World · India Bureau
Nike braces for deeper cuts as turnaround efforts falter globally
The athletic footwear giant is preparing additional workforce reductions and forecasting a significant revenue decline, signalling that its recovery will stretch well beyond the current quarter. The slowdown is particularly acute in China, where sales have plummeted nearly 26 percent.
LSN India ·
Nike is preparing to announce fresh job cuts and a steep revenue forecast as its much-anticipated turnaround strategy shows signs of stalling. The company's cautious outlook, delivered Thursday, suggests headwinds will persist across multiple quarters ahead, creating fresh pressure on shareholders and employees alike.
The challenges prove especially pronounced in China, a crucial market for the American sportswear manufacturer. Sales in the region tumbled 26 percent, underscoring the intensity of competition and softening demand in Asia's largest economy. The decline reflects broader struggles Nike faces in diversifying its recovery beyond core North American markets.
The company has already undertaken significant restructuring efforts, but the latest developments indicate deeper intervention may be necessary. Additional headcount reductions would mark an escalation in Nike's cost-containment strategy as it works to stabilise margins and restore investor confidence.
Analysts have flagged that Nike's path to recovery appears more protracted than initially anticipated. The convergence of weakening international demand, particularly in China, alongside domestic market pressures has forced the company to recalibrate its financial expectations downward for the periods ahead.