Nike boss Elliott Hill announces “Pace” savings program with $2.5 billion in savings by 2031

Munich. Nike boss Elliott Hill is giving the world's largest sporting goods manufacturer the next savings program. By 2031, the program called “Pace” is expected to reduce costs by $2.5 billion, the company announced on Thursday after the stock market closed.

It is about restructuring the operational business model in order to support the recently announced “sports offensive”: a modernization of the supply chains, a new corporate campus in the growth market of India and a further streamlining of the organization. “We need to do more with Nike sportswear, the Jordan brand and in China,” Hill said. “And we are taking steps to strengthen these businesses over the long term.”

Job cuts are apparently planned again: Nike expects costs of around a billion dollars by 2031, the majority of which “relates to the workforce”. The US group had already set aside around $300 million for severance payments last year. A further 300 million are for the current 2026/27 financial year (as of the end of May).

For 2026/27, Nike expects a decline in sales of a high single-digit percentage - significantly greater than analysts had expected. Earnings per share will decline to between $1.15 and $1.35 (2025/26: $2.10), even without the burden of the austerity program. “Pace” will cost another $0.15 per share.

In the first quarter, which ran from June to August, Adidas' rival lost four percent in sales to $11.2 billion. Analysts had expected a slightly smaller decline. Earnings per share also fell slightly to 48 (49) cents per share. Here, the experts only expected Nike to make an average of 43 cents. New finance chief Dave Denton said the quarter was in line with expectations.