Nike, Inc. said in a regulatory filing that it expects to take a pretax charge of about $300 million, mostly in the fiscal third quarter, because of employee severance costs over a nine-month period ending February 28. Nike did not specify how many jobs the company had cut.
In the filing, the company states, “Nike, Inc. management has been evaluating opportunities to operate more efficiently and profitably through realigning costs, while also investing to reignite growth. On February 27, the company’s management approved a plan to implement certain organizational changes, which, together with previously approved actions, are expected to result in pre-tax charges of approximately $300 million for the nine months ended February 28, 2026, primarily associated with employee severance costs, and substantially all recognized in the third quarter of fiscal year 2026. The company continues to evaluate opportunities and may take additional actions, which could lead to additional charges in future quarters. The expected pre-tax charges are estimates and are subject to a number of assumptions, including local law requirements in various jurisdictions. Actual charges may differ, possibly materially, from the estimates provided above.”
In January, Nike announced it would lay off about 775 employees as part of its turnaround strategy. The cuts were expected to affect workers at Nike’s distribution centers in Tennessee and Mississippi, amounting to about 1 percent of the total workforce. Last December, CEO Elliott Hill told analysts that Nike was still in the “middle innings” of its turnaround plan, as costs from investments in the business were continuing to squeeze margins.
Image courtesy Nike
