Nike plans to cut an unspecified number of jobs and establish a new campus in India as the sportswear giant seeks to accelerate its turnaround following another disappointing quarter.

The company announced the plans alongside its latest earnings report, which showed a modest decline in quarterly profits amid falling sales. It also forecast a high-single-digit percentage drop in sales for the current fiscal year.

“We’re building Nike for the long term,” Chief Executive Officer Elliot Hill said during an earnings conference call, highlighting the company’s growing relationship with women’s basketball star Caitlin Clark.

Nike reported a 2% year-on-year decline in quarterly profits to $712 million, while revenue fell 4% to $11.2 billion in the quarter ended 31 August, marking the first quarter of its fiscal 2027.

Revenue increased 2% in North America but declined across every other region. Greater China recorded the sharpest fall, with revenue plunging 22% to $1.2 billion.

Hill also acknowledged the need to improve performance in the sportswear and Jordan brands.

He returned as Nike’s CEO in October 2024, tasked with reversing the company’s declining performance, which had been attributed partly to excess inventory of poorly selling products and a strategic shift towards direct sales that weakened its presence among key retailers.

While Hill said Nike had made progress since his return, he stressed that more substantial changes were necessary following a comprehensive review of the business.

Nike “must make changes to become a more agile, efficient and athlete-focused company,” Hill said in a message to employees.

The restructuring will result in job cuts across the company, although the exact number of affected positions has not yet been determined.

“These shifts will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty,” Hill said, promising transparency as the plans take shape.

Decisions concerning affected positions will begin in 2027 and continue beyond, he added.

As part of its broader strategy, Nike also plans to establish a new campus in Bengaluru, India, which Hill described as a long-term investment in developing capabilities and talent to better serve athletes worldwide, including in India.

However, the latest results have raised concerns about the company’s ability to regain its market position.

Neil Saunders, managing director of GlobalData, said Nike’s latest performance showed that its brand appeal continued to weaken, leaving it struggling to compete with more agile rivals.

He described the company’s forecast of further revenue declines as particularly concerning, calling the outlook “shabby”.

Nike shares fell 7.1% in after-hours trading following the announcement.