Nike president and chief executive officer Elliott Hill hoped to qualm fears among employees bracing for more layoffs in a new memo published online on Thursday.

In the letter to employees, Hill announced changes to Nike’s operating model that will help “accelerate and scale” the “Sport Offense” strategy and position the Swoosh for long-term growth.

The new plan, dubbed “Pace,” includes efforts to modernize Nike’s global supply chain, the establishment of a new campus in India to fuel its enterprise capabilities, a realignment to three geographies, and further streamlining of the organization to reduce costs.

“This work will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty,” Hill admitted in the memo. “I don’t take that lightly. Throughout this process, we will communicate directly, act with transparency and treat people with respect.”

Decisions about impacted roles related to this work will begin in calendar year 2027 and beyond, the CEO said.

“For most teammates, the work immediately in front of you remains the same,” Hill said. “We have shared some financial information, but these numbers are estimates and could materially change. Anything you may see in media reports around impacts is speculative because we do not yet know the number of roles or specific locations of positions.”

Among the changes sure to effect roles is the company’s restructuring of its geographies. Starting in fiscal 2028, Nike will move from four geographies to three in order to bring “more decisions, accountability and resources closer to the markets we serve,” Hill wrote.

The three geographies will be: Americas, bringing together North America and Latin America; APGC, bringing together Asia Pacific and Greater China; and EMEA, which will continue operating where it does today.

As part of this change, Hill said that the APGC leadership team will be based in Singapore, and some roles currently supporting the region from Beaverton, Ore. will move closer to “the markets they serve.”

Another move mentioned in Pace is establishing a new Nike campus in Bengaluru, India. “India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent,” Hill noted. “The Bengaluru campus is a long-term investment in new capabilities and talent to strengthen how we serve athletes around the world, including in India.”

The CEO said that full-time Nike teammates on this campus will support work across Nike, Jordan Brand and Converse. Teammates already in India will move in phases, and the campus will grow over the next several years.

Hill added: “These decisions are about redirecting investment toward the areas most critical to winning: product innovation, brand storytelling, consumer connection, sport and growth. Teammates affected by these changes will hear directly from their leaders, with clear timelines and support as decisions are made. Where local consultation is required, we won’t finalize proposals until that process is complete.”

Nike said on Thursday that it expects Pace to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, with approximately $1.0 billion of pre-tax charges, primarily consisting of employee-related costs, through fiscal 2031, in addition to approximately $300 million of severance costs recognized in fiscal 2026. Nike expects approximately $300 million to be recognized in fiscal 2027.

This is just the latest round of layoffs to hit the Swoosh in its bid to turnaround the business after several years of challenging performance.

In April, Nike’s chief operating officer Venkatesh Alagirisamy revealed a round of layoffs in a memo, which stated the move was part of the “next phase” of the company’s “Win Now” turnaround plan. All told, the company confirmed to FN that approximately 1,400 operations roles have been impacted across North America, Europe and Asia, and represents less than 2 percent of the company’s total global headcount.

April’s memo followed the disclosure in January that nearly 800 jobs were on the chopping block at Nike as it consolidated its U.S. distribution center operations across facilities in Tennessee and Mississippi. And just weeks later, Converse set its own cuts, although exact numbers of who was impacted were not disclosed at the time.

Thursday’s news comes at the same time as Nike reported its first quarter 2027 earnings. Net income at the Beaverton, Ore.-based company in the first quarter of fiscal 2027 was $712 million, down 2 percent from $727 million at the same time last year. Diluted earnings per share in Q1 is 48 cents, down from 49 cents a share in the first quarter of 2026.

Net sales in the quarter tallied $11.2 billion, down 4 percent from $11.7 billion in the first quarter last year on a reported basis, and down 5 percent on a currency-neutral basis.