March 5 (Reuters) – Nike will record about $300 million in pre-tax charges related to severance costs from a restructuring push at the footwear maker as CEO Elliott Hill looks to contain a margin bleed and refresh its product mix to revive sales. The company cut about 775 jobs in the U.S. in January to […]
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Nike records $300 million in restructuring charges after recent layoffs
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March 5 (Reuters) – Nike will record about $300 million in pre-tax charges related to severance costs from a restructuring push at the footwear maker as CEO Elliott Hill looks to contain a margin bleed and refresh its product mix to revive sales.
The company cut about 775 jobs in the U.S. in January to speed up automation. Nike-owned Converse was also cutting corporate roles to realign its operating model with the parent company, Reuters reported in February.
The charges — mostly related to employee severance costs — will be recognized in the third quarter of fiscal 2026, and the company may take more such actions, which could result in additional charges, Nike said in a regulatory filing on Thursday.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Alan Barona)