Nike Plans Layoffs Amid Stock Price Plunge
Sportswear company Nike announced plans for job cuts and an operating model overhaul as its stock price hits new lows. The company's revenue declined more than expected.
Nike Inc. is planning to reduce its workforce as the sportswear giant's stock price falls to multi-year lows. The company announced a new operating model that will include job reductions, though specific numbers and timelines have not yet been disclosed.
Nike reported first-quarter revenue of $11.21 billion, a 4% decrease year-over-year. This figure fell short of Wall Street's expectations, which had predicted $11.32 billion. However, earnings per share exceeded forecasts, reaching 48 cents.
The company's stock was down more than 8% in premarket trading on Friday and has fallen over 52% in the past 12 months. The share price is trading near a 13-year low.
The new operating model aims to make Nike a more agile, efficient, and athlete-focused company. It involves segmenting customers into three geographic areas: Americas, APGC (Asia Pacific and Greater China), and EMEA (Europe, Middle East, and Africa). Modernization of the supply chain is also continuing.
Nike has previously implemented layoffs this year, confirming approximately 775 U.S. job cuts in January. The company's stock has been among the bottom performers in the S&P 500 index.