Nike has announced plans for mass layoffs following weak results in its first quarter, which was reported on 1 October 2026.
According to a statement by the CEO of Nike, there will be company-wide changes to the operating model to streamline the overall business.
The CEO stated that decisions about impacted roles, which are related to work, will start in the calendar year of 2027 moving forward.
Nike did not disclose the specific number of people who will be laid off or the specific dates and financial transactions of the current matter.
The company reported weak first-quarter results for the period ended on 31 August, 2026, with revenues decreasing by 4 per cent $11bn.
The sportswear retailer’s direct revenue went down by 8 per cent to $4.1bn, which was driven by a steep decline in Nike brand digital.
The company’s wholesale revenues went down by 1 per cent to $6.8bn, which was due to declines in Greater China and EMEA, which were partially offset by growth in North America.
Dave Denton, EVP and CFO of Nike said: “We delivered first-quarter results consistent with our expectations, supported by improved gross margin and disciplined cost management.
“As we move forward, we remain focused on strengthening the health of our product portfolio, improving productivity across the enterprise and allocating resources with discipline to support long-term shareholder value.”
Nike’s net income went down by 2 per cent to approximately $0.7bn, and the brand’s diluted EPS was $0.48.
The business has executed its Pace strategy, which is centered around four objectives: accelerating supply chain efforts, organizing three geographies, and changing its overall workforce.
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