Nike CEO Warns of New Layoffs in 2027 Amid Changing Operating Model
Nike CEO Elliott Hill has addressed employee concerns regarding future layoffs as part of a new 'Pace' operating model. The restructuring aims to streamline the company's global supply chain and geography-based organization by 2027.
Why it matters
The announcement provides clarity on Nike's long-term operational strategy while acknowledging the uncertainty faced by its global workforce.
Nike president and chief executive officer Elliott Hill hoped to qualm fears among employees bracing for more layoffs in a new memo published online on Thursday.
In the letter to employees, Hill announced changes to Nike ’s operating model that will help "accelerate and scale" the "Sport Offense" strategy and position the Swoosh for long-term growth.
The new plan, dubbed “Pace,” includes efforts to modernize Nike's global supply chain, the establishment of a new campus in India to fuel its enterprise capabilities, a realignment to three geographies, and further streamlining of the organization to reduce costs. Related Stories Nike Reveals New Operating Model as It Misses Q1 Sales Nike's New Premium Air Max 95 Big Bubble Is Getting Compared to 'the Joker' and It's Available Right Now
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