TLDR
- Nike will record ~$300 million in pre-tax charges, mostly in Q3 fiscal 2026, tied to employee severance costs.
- The charges cover a nine-month period ending February 28, 2026.
- Around 775 U.S. jobs were cut in January, with 583 more set to go at a Memphis facility in April.
- Nike-owned Converse also cut corporate roles as part of the same restructuring effort.
- NKE stock has fallen 8.9% year-to-date and 26% over the past 12 months.
Nike (NKE) is taking a $300 million pre-tax charge tied to job cuts carried out over the past nine months as CEO Elliott Hill pushes through a broad restructuring effort aimed at cutting costs and reviving sales.
The charge — disclosed in a regulatory filing Thursday — covers severance costs from layoffs between June 2025 and February 2026. The company said “substantially all” of the charges will hit its fiscal Q3 2026 results.
Nike did not give a total headcount figure for the cuts across that full period. However, the company did confirm separate actions in early 2025.
In January, Nike cut around 775 U.S. jobs as part of a push to speed up automation. Nike Retail Services also filed a WARN notice with Tennessee’s labor department saying 583 jobs at its Memphis facility would be cut permanently, effective April 3.
Nike-owned Converse also trimmed corporate roles during this period. Reuters reported in February that Converse was realigning its operating model with the parent company.
What’s Driving the Cuts
Hill, who took over as CEO in late 2024, has made no secret of his plan to fix Nike’s margins while refreshing its product lineup. The company has flagged that it is “evaluating opportunities to operate more efficiently and profitably through realigning costs.”
The filing also left the door open for more cuts. Nike said it may take “additional actions” that could result in further charges in future quarters.
It’s a rough stretch for a brand that built its name on momentum — both on and off the track.
What Comes Next
Nike will report its fiscal Q3 2026 earnings on March 31 at 4:15 p.m. ET, followed by an executive call at 5 p.m. ET. That report will give investors their first detailed look at how the restructuring is affecting the bottom line.
The stock was down slightly in premarket trading Friday. NKE has dropped 8.9% so far in 2026 and is down 26% over the past 12 months.
The $300 million charge is a pre-tax figure, and Nike noted that actual charges could differ from current estimates.
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