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Nike shares fall after weak guidance and plans for more layoffs starting in 2027
October 2, 2026
Nike reports fiscal first-quarter revenue down 4% to $11.2 billion and sets out a $2.5 billion cost program with job cuts from 2027.
Nike is a global sportswear company whose Jordan and Sportswear lines and China business have faced pressure, and it cut jobs twice earlier this year.
CNBC reports that Nike's fiscal first-quarter revenue fell 4% to $11.2 billion, with declines in Greater China partly offset by gains in North America. The company also set out a new operating model called Pace, which CNBC says should yield $2.5 billion in cost savings by 2031 and brings further layoffs from 2027. The plan reorganizes Nike into three geographies, adds a campus in India and updates the global supply chain. “This work will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty. I don't take that lightly,” said Hill, according to CNBC.
The market reaction is sharp. In Friday premarket trading, CNBC reports, Nike stock fell 10.36% for a second straight day of losses and is off nearly 45% this year. Citi analysts, in a note CNBC carries, hold a neutral view because sales guidance landed below market expectations. Barron's agrees on the reaction: it reports that guidance disappointed investors even though expectations were low, and its headline ties the stock's weakness to a slow turnaround.
The two outlets agree on the substance: soft guidance, a cost program and a falling share price. CNBC adds the layoff history, 775 jobs in January and 1,400 employees in April. What stays open is how fast Pace delivers, since Citi analysts say that detail will only come in 2029.
Still developing
The Pace program still has no detail on when it will move the dial, and Citi analysts noted that management will offer more detail at its investor day.
How settled the reporting is
Sources
- Barron's — Nike Stock: Earnings Show Sluggish Turnaround Remains Obstacle - Barron's
- CNBC — Nike shares plummet 10% after weak revenue outlook and layoff plans underway
Toggle read the full reports of 3 of the 4 outlets counted on this event. The other 1 are counted from their headlines and opening sentences.