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● LIVE Updated 2h ago · 12 sources tracked

Nike announces new restructuring, layoffs. Stock dips to lowest level in 13 years

Nike announced a sweeping restructuring plan alongside pending job cuts after reporting a first-quarter revenue miss and disappointing sales. The operational changes include shrinking operations, merging regional businesses, and introducing a new program called Pace. Following the announcement, Nike shares plunged, dropping 10 percent in one session and hitting their lowest level in 13 years. The athletic apparel giant also projected an overall sales decline for the fiscal year as it attempts to turn around its business and address falling revenue.

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  • ✓ Nike announced a new restructuring plan and pending layoffs after-hours Thursday.
  • ✓ Nike shares plummeted 10 percent following the weak revenue outlook and layoff announcements.
  • ✓ The company reported $11.2 billion in quarterly sales, falling below expectations.
  • ✓ Nike projected an overall sales decline for the fiscal year.
🛡️ Source Corroboration: 12 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

Nike unveiled a new operating model that includes job cuts, a restructuring plan, and the Pace program following a weaker-than-expected first-quarter revenue report.

Live updates

  1. Nike Announces Restructuring and Layoffs as Shares Hit 13-Year Low

    Nike announced a sweeping restructuring plan alongside pending job cuts after reporting a first-quarter revenue miss and disappointing sales. The operational changes include shrinking operations, merging regional businesses, and introducing a new program called Pace. Following the announcement, Nike shares plunged, dropping 10 percent in one session and hitting their lowest level in 13 years. The athletic apparel giant also projected an overall sales decline for the fiscal year as it attempts to turn around its business and address falling revenue.

    Why it matters

    The sportswear icon has faced mounting pressure to revive growth, particularly in key overseas markets like China. Management is shrinking operations and restructuring regional setups to counter sliding demand. The financial slump reflects deeper struggles to regain retail momentum after consecutive quarters of declining revenue.

    What is confirmed

    • Nike announced a new restructuring plan and pending layoffs after-hours Thursday.
    • Nike shares plummeted 10 percent following the weak revenue outlook and layoff announcements.
    • The company reported $11.2 billion in quarterly sales, falling below expectations.
    • Nike projected an overall sales decline for the fiscal year.

    Still unconfirmed

    • Some market analysts view the slumping stock as a contrarian buy opportunity for patient investors.

    What to watch next

    • Implementation details and timelines for the Pace restructuring program
    • Future quarterly earnings reports to gauge the impact of regional business mergers
    • Signs of sales recovery in international markets such as China
    Sources used for this update (13)
    1. About Nike — NIKE, Inc. Announces Changes to Its Operating Model —
    2. OregonLive.com — Nike announces new restructuring, layoffs. Stock dips to lowest level in 13 years
    3. WSJ — Nike Projects Sales Decline This Year After Lower First-Quarter Revenue
    4. Fox Business — Nike plans job cuts under sweeping restructuring plan
    5. CNBC — Nike shares plummet 10% after weak revenue outlook and layoff plans underway
    6. www.cnbc.com — Nike (NKE) Q1 2027 earnings - CNBC
    7. flipboard.com — Oregon Police Are Charging a Local News Outlet $2.5M for Records About One Cop
    8. finance.yahoo.com — Be a Contrarian and Load Up on Nike Stock on the Dip as the Payoffs Get Attractive
    9. www.yahoo.com — Nike Announces New Restructuring, Layoffs; Stock Dips to ...
    10. economictimes.indiatimes.com — Nike layoffs: Nike stock falls after revenue miss, NKE ...
    11. www.vogue.com — Nike Announces Layoffs, Operating Changes as Q1 Sales Fall ...
    12. finance.yahoo.com — Nike Announces More Layoffs; Shares Fall - Yahoo Finance
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