New model, named “Pace”, envisages supply chain modernisation, organisation across three geographies, and the creation of a new campus in Bengaluru, India.
Nike has announced changes to its operating model to accelerate the execution of its “Sport Offense” strategy and create a more agile, efficient structure closer to athletes and consumers. The company also stated that the process is expected to result in role reductions, with decisions on affected positions starting in 2027.
The changes are part of the “Pace” programme, presented by the company as an evolution of its operating model rather than a response to a single quarter. The initiative is based on four priorities: modernising the supply chain, geographic reorganisation, establishing a new campus in India, and transforming the work structure and workforce.
In the supply chain, Nike intends to advance technological solutions and a more variable cost structure, aiming to increase flexibility and responsiveness to consumer demand. According to the company, the modernisation should help improve speed, service, and operational profitability.
Another change will be Nike's organisation into three major geographies: Americas, which will bring together North America and Latin America; APGC, which will combine Asia-Pacific and Greater China; and EMEA, which will maintain its current configuration responsible for Europe, the Middle East, and Africa. APGC leadership will be based in Singapore, with some roles currently located in Beaverton, in the United States, moving closer to the region's markets starting in fiscal year 2028.
In India, Nike will establish a new campus in Bengaluru, a city the company considers strategic due to its growth potential, industrial capacity, and talent availability. The new facility will support operations for Nike, Jordan Brand, and Converse, and develop capabilities aimed at global markets, with expansion planned over the coming years.
The operational transformation will also impact headcount. Nike states that it will require fewer roles over time as it redirects investments toward areas such as product innovation, brand building, consumer connection, sport, and growth. The company has not disclosed the number of positions that could be affected at this stage.
According to Elliott Hill, President and CEO of NIKE, the changes aim to create a “faster” company that is closer to athletes and consumers. The executive indicated that the company will continue to communicate next steps internally, with decisions regarding affected roles to begin in 2027.
Nike plans to provide further details on the new growth cycle and the financial impact of the “Pace” programme during its Investor Day, scheduled for 16 and 17 November.
On that occasion, the company is expected to address the financial plan and how the operational changes align with its long-term strategy.
Editorial staff: ola@targeting.ao
