Nike plans to cut an undetermined number of jobs and establish a new campus in India as it seeks to accelerate a turnaround following another downcast quarter.
The company projected sales in the current fiscal year would fall by “high-single digits,” according to an earnings statement.
Hill rejoined Nike as CEO in October 2024 as the company sought a pivot due to problems that included an oversupply of too many items that sold poorly and an ill-conceived shift to direct sales that left the company underrepresented with key retailers.
The company projected sales in the current fiscal year would fall by “high-single digits,” according to an earnings statement. “We’re building Nike for the long term,” Chief Executive Elliot Hill said during a conference call in which he touted the company’s burgeoning relationship with women’s basketball star Caitlin Clark. Hill told analysts the company has made progress since his return, but that deeper changes were needed following a comprehensive review. Nike “must make changes to become a more agile, efficient and athlete-focused company,” Hill said in a message to employees. Nike plans a new campus in Bengaluru, India, which will represent “a long-term investment in new capabilities and talent to strengthen how we serve athletes around the world, including in India,” Hill said in the message. The company’s forecast for a further decline in revenues was particularly troubling, said Saunders, who called the outlook “shabby.”
