Nike filed with regulators Thursday disclosing it will record approximately $300 million in pre-tax charges tied to ongoing cost-cutting efforts — the latest financial signal that CEO Elliott Hill's turnaround of the company is still in process, and still expensive.
The charges are primarily severance costs. Management approved a new restructuring plan on February 27, and most of the costs are being recognized in Q3 of fiscal 2026. Nike also noted it may take additional actions that could generate further charges in future quarters — meaning this number isn't necessarily the final one.
The cuts aren't new in spirit. In January, Nike laid off roughly 775 workers at U.S. distribution centers in Tennessee and Mississippi, framing the move as part of an effort to accelerate automation. Around the same time, Nike-owned Converse was cutting corporate roles to align more closely with the parent company's operating model. Converse has been a visible pain point in the turnaround story — its revenue fell 30% in the most recent quarter, and the brand is now operating at a 15-year low in sales.
Hill, who took over as CEO in late 2024, told investors in December that Nike was still in the "middle innings" of its turnaround. The company is simultaneously managing roughly $1 billion in tariff headwinds, diversifying its manufacturing away from China (currently about 16% of footwear imports) into Vietnam, Indonesia, and other Southeast Asian markets, and attempting to rebuild retailer relationships it damaged by going too direct-to-consumer in earlier years.
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