Nike CEO Elliott Hill is cutting $2.5 billion in costs while increasing investment in marketing and brand-building as the sportswear giant works to return to growth.
Nike CEO Elliott Hill is launching a five-year cost-cutting programme targeting $2.5 billion in savings while increasing investment in marketing and brand-building as the sportswear giant works to return to growth.
Called Pace, the programme will reduce roles across Nike while redirecting spending towards product innovation, brand storytelling, consumer engagement, sport and growth. Most of the savings are expected to be realised in fiscal 2029 and 2030.
“At our size and scale, meaningful change takes time,” Hill told investors, asking for patience as the company works through its turnaround.
Nike Cuts Costs While Raising Marketing Spend
Nike’s latest strategy reflects a deliberate shift in where it spends rather than simply cutting expenses across the business.
Demand creation spending, which covers marketing, advertising and sponsorships, increased 5% year-on-year to $1.3 billion in the quarter ended August 31. The increase follows a 4% decline in the previous quarter.
Hill has been rebuilding Nike’s focus on sport through its Sports Offense strategy, with greater emphasis on major sporting moments and athlete-led storytelling. Nike’s performance business across running, football, basketball, training, tennis and golf grew at a high-single-digit rate during the quarter.
The strategy will also position Nike around major sporting events, including the 2026 FIFA World Cup.
Revenue Falls as Nike Pushes Through Turnaround
Nike reported first-quarter revenue of $11.2 billion, down 4% year-on-year. Sales in China fell 22%, while net income stood at $712 million.
The weak results have added pressure on Hill’s turnaround plans. Nike shares fell about 10% following the latest update, reaching around $31.58, according to the supplied report.
Pace will involve changes to Nike’s supply chain, a reduction in the company’s regional structure from four regions to three, a new campus in China, and changes to its workforce.
From 2028, Nike plans to operate across three regions: the Americas, APGC, and EMEA.
Caitlin 1 Gives Nike a Major Product Moment
Nike is also relying on new products and athlete partnerships to rebuild consumer momentum.
The Caitlin 1, Caitlin Clark’s first signature shoe, launched on October 1 and nearly sold out within hours. Hill described it as the largest women’s signature shoe launch in Nike’s history.
The launch covered 5,000 retail doors, about twice the average distribution for a Nike basketball signature shoe, and was supported by the company’s biggest holiday product campaign.
Nike is also addressing excess supply of Jordan retro products. Hill said the company had been oversupplying iconic retro styles and was now working to correct the imbalance.
China remains another major challenge, with Hill expecting the market to require multiple seasons to stabilise.
Nike Faces Key Test at November Investor Day
Nike’s turnaround will face a major test at its investor day on November 16 and 17, when Hill is expected to provide more detail on the company’s strategy and long-term growth plan.
The company’s approach is increasingly clear: reduce costs in areas that can be streamlined while protecting spending on products, sport, athletes and brand storytelling.
For Hill, the challenge is turning that strategy into sustained revenue growth while rebuilding Nike’s position in key markets.
Elliott Hill, President and CEO of Nike. Credit: Nike
