The Globe and Mail reports in its Friday edition that Nike deepened its restructuring under chief executive officer Elliott Hill on Thursday, announcing a plan to cut more jobs and shake up its global business units after it projected a surprisingly steep drop in full-year revenue.
A Reuters dispatch to The Globe reports that Nike is working to revive growth under Mr. Hill by refocusing on key sports and strengthening relationships with wholesale retailers.
The weaker-than-expected forecast underscored that Nike's challenges will likely persist for several quarters -- especially in China, where sales fell 26 per cent on a constant-currency basis in the first quarter -- adding to investor unease about the pace of Mr. Hill's turnaround.
Nike does not know the number or roles that will be cut under the restructuring. It will begin notifying employees in 2027.
Nike's woes have in large part stemmed from a failure to release enough new, compelling products, analysts have said, leading to an uptick in promotions and discounts.
Nike expects its revenue to decline in high single digits in fiscal 2027. The company earlier forecast revenue to decline by a low-to-mid-single-digit percentage in the first half of fiscal 2027.
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