MANAGEMENT ARTICLE

Nike’s $2.5 Billion Cost-Cutting Plan: The Criteria Separating Costs to Cut from Investments to Protect

Based on Nike’s cost restructuring plan and quarterly earnings, this article compares the trade-offs between across-the-board cuts, operational redesigns, and selective investments. It outlines a decision-making framework that avoids mistaking cumulative savings goals for cash returns, while designing phased capital allocation and conditions for suspension and expansion.