Nike Stock Drops on Revenue Miss and Restructuring Layoff Plans
Nike shares fell in after-hours trading on Thursday after the sportswear giant reported lower-than-expected quarterly revenue and outlined a major corporate restructuring plan that includes upcoming job cuts. Despite beating Wall Street expectations for quarterly earnings per share—posting 48 cents compared to the 43 cents projected—the company reported a 4% decline in quarterly revenue, driven primarily by a sharp 26% sales slump in Greater China.
Investors reacted negatively as executives issued a cautious outlook forecasting a high-single-digit revenue decline for fiscal year 2027, compounding pressure on a stock that has already lost over 40% of its value this year. According to an official news report published by Channel NewsAsia, the weak performance underscores persistent difficulties in accelerating product innovation and stabilizing key international consumer markets.
To address the ongoing revenue headwinds, Chief Executive Officer Elliott Hill announced a comprehensive operational restructuring aimed at generating $2.5 billion in cumulative savings through fiscal year 2031. In a letter to employees, Hill confirmed that the organizational changes will result in workforce reductions across global operations, though the company has not yet specified the total number of affected roles.
Under the new operational model, Nike will consolidate its global geographic footprint from four regions down to three—Americas, Asia Pacific and Greater China, and EMEA—while establishing a new operational campus in Bengaluru, India. Management indicated that formal employee notifications regarding the workforce reductions are scheduled to begin in 2027 as part of broader efforts to streamline decision-making, enhance agility, and reinvest in core athletic innovation.
