Nike CEO Elliott Hill is making it clear that the company wants to get back to its core business as the athletic giant struggles through one of its roughest stretches in years.
In a memo to employees dated Oct. 1, Hill said Nike has spent the past year putting sports back at the center of the brand.
“Over the past year, we’ve put sport at the center of everything we do,” Hill wrote. “We’re seeing encouraging signs of progress, but we have more work to do to win over the long term.”
The message came just before Nike shares closed at $33.87 on Oct. 2, their lowest level in more than 12 years.
The company’s stock has fallen sharply from its 2021 peak as Nike deals with weaker demand, increased competition, problems in China and criticism that it leaned too heavily on retro products instead of fresh innovation.
Hill’s comments also stand out because Nike spent years mixing its athletic identity with high-profile social and political campaigns.
The company famously featured former NFL quarterback Colin Kaepernick in a major “Just Do It” campaign in 2018.
Two years later, Nike launched its “For Once, Don’t Do It” campaign following the death of George Floyd.
In 2023, the company also partnered with transgender influencer Dylan Mulvaney to promote women’s athletic apparel, a move that sparked backlash from some consumers.
Those campaigns, however, cannot be blamed by themselves for Nike’s current financial problems.
The company’s shares actually reached an all-time closing high in 2021, well after several of those campaigns had already launched.
Since then, the picture has changed dramatically.
Nike has struggled to maintain momentum as newer competitors have gained ground and consumer interest has shifted.
The company has also faced pressure over its performance in China, where sales have weakened.
At the same time, critics have accused Nike of losing some of the product innovation and athlete-focused energy that once made it dominant.
Hill’s latest restructuring plan is aimed at changing that.
The initiative, called “Pace,” is designed to make Nike faster, more responsive and more focused on athletes and consumers.
Under the plan, Nike will reorganize its operations around three geographic regions.
The company also plans to modernize its supply chain and establish a new campus in Bengaluru, India.
More job cuts are expected beginning in 2027.
Hill said the restructuring is intended to shift resources toward the parts of the business he believes matter most, per Trending Politics.
“These decisions are about redirecting investment toward the areas most critical to winning: product innovation, brand storytelling, consumer connection, sport and growth,” Hill told employees.
Nike has already acknowledged that its turnaround is far from complete.
“The Sport Offense is driving measurable progress across our performance business, and we introduced Pace to help us accelerate and scale that momentum across NIKE,” Hill said.
He added that the company still has significant work to do in Nike Sportswear, Jordan Brand and Greater China.
Nike has also faced criticism over its handling of major athletes.
One example has been WNBA star Caitlin Clark, whose rapid rise in popularity was not immediately followed by the release of a signature Nike shoe.
That delay became another talking point for critics who argued the company was missing opportunities in the very area it now says it wants to emphasize most: sports.
Meanwhile, Nike’s financial troubles continue to put pressure on Hill’s turnaround effort.
The company’s market value and earnings have fallen sharply as Nike works to rebuild wholesale relationships, revive product innovation and stabilize weaker parts of the business.
For years, Nike was one of the most powerful names in global sportswear.
Now, management is trying to restore that position by putting athletes, products and sports back at the front of the company’s strategy.
Hill has not explicitly said Nike “went too woke,” but his latest message leaves little doubt about where he wants the company focused now: sports come first.
