Nike CEO Warns of New Layoffs Next Year Amid Changing Operating Model
Nike CEO Elliott Hill has warned employees of additional layoffs scheduled for next year as the company modifies its operating model. This move follows a period of financial instability marked by lower first-quarter revenue and missed estimates, leading the company to project a sales decline for the current year. The restructuring effort aims to boost a sputtering turnaround, but the news has already caused Nike stock to drop to its lowest level in 13 years and impacted share prices for competitors like Lululemon and Under Armour.
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- ✓ Nike is the world's largest supplier of athletic shoes and apparel.
- ✓ The company reported revenue exceeding US$46 billion in its fiscal year 2022.
- ✓ Nike projects a sales decline this year following lower first-quarter revenue.
- ✓ Nike stock has fallen to its lowest level in 13 years.
What changed
CEO Elliott Hill issued a memo warning of new job cuts in 2027 to align with a changing operating model.
Live updates
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Nike CEO Elliott Hill Warns of Further Layoffs Next Year
Nike CEO Elliott Hill has warned employees of additional layoffs scheduled for next year as the company modifies its operating model. This move follows a period of financial instability marked by lower first-quarter revenue and missed estimates, leading the company to project a sales decline for the current year. The restructuring effort aims to boost a sputtering turnaround, but the news has already caused Nike stock to drop to its lowest level in 13 years and impacted share prices for competitors like Lululemon and Under Armour.
Why it matters
Nike is the world's largest supplier of athletic shoes and apparel, reporting revenue exceeding US$46 billion in fiscal year 2022. The current restructuring comes as the company struggles with growth issues and investor confidence in Hill's leadership.
What is confirmed
- Nike is the world's largest supplier of athletic shoes and apparel.
- The company reported revenue exceeding US$46 billion in its fiscal year 2022.
- Nike projects a sales decline this year following lower first-quarter revenue.
- Nike stock has fallen to its lowest level in 13 years.
Still unconfirmed
- CEO Elliott Hill hopes to qualm employee fears regarding the upcoming rounds of layoffs.
- Nike's growth problem is larger than a single bad quarter.
- The warning regarding Nike's performance hit stock prices for On, Hoka maker Deckers Outdoor, Lululemon, and Under Armour.
What to watch next
- Official earnings report details following the bell
- Specific number of employees affected by the 2027 layoffs
- Quarterly revenue figures for the next reporting period
confidence 90%Sources used for this update (22)
- www.nike.com — Nike. Just Do It. Nike.com
- en.wikipedia.org — Nike, Inc. - Wikipedia
- www.nike.in — Nike. Just Do It. Nike IN
- about.nike.com — Welcome to NIKE, Inc. —
- www.nike.ae — Nike UAE Official Online Store - Shop Shoes, Clothing, Bags &...
- CNBC — Nike is set to report earnings after the bell. Here's what to expect
- About Nike — NIKE, Inc. Announces Changes to Its Operating Model —
- OregonLive.com — Nike announces new restructuring, layoffs. Stock dips to lowest level in 13 years
- Yahoo Finance — Nike stock sinks as revenue misses estimates, expects to cut jobs
- WSJ — Nike Projects Sales Decline This Year After Lower First-Quarter Revenue
- Fox Business — Nike plans job cuts under sweeping restructuring plan
- Reuters — Nike plans more job cuts to boost sputtering turnaround, forecasts steep revenue drop
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