Nike announces layoffs as part of restructuring plan
The retailer is cutting costs and reorganizing its business as North America sales fell to $4.83 billion and China sales dropped 12% last quarter.
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The US clothing and sports equipment group Nike announced on Thursday a "new business model" which is expected to lead, among other things, to job losses, in order to generate about $2.5 billion in savings by fiscal year 2031.
The sporting goods company Nike expects a significant decline in sales. By 2031 the costs are to fall by 2.5 billion dollars. Further job cuts are also planned.
Nike shares fell more than five percent in after-hours trading to around $33 after the company reported results for the first quarter of fiscal 2027 and announced a decline in full-year revenue. That's the lowest price since 2014, according to market data, and the stock is about 81 percent below its November 2021 record high of $179.
Nike’s Restructuring Means Layoffs, Geographic Changes
Wall Street is anxious for a Nike rebound. Nike says it’s going to take a while. The company announced Thursday it plans to restructure through 2031, trimming its size, reorganizing its geographies and updating its supply chain. These efforts are expected to result in $2.5 billion in cost savings over the next four years, including […]
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