Nike layoffs loom as its stock price hits punishing new lows

Shares of Nike Inc. are tumbling to fresh lows Friday morning after disappointing first quarter results and layoff plans. The athletics company reported $11.21 billion in revenue, down 4% year over year. Its revenue failed to meet Wall Street’s expectation of $11.32 billion, according to consensus estimates cited by CNBC. Nike did beat the predicted 43 cents earnings per share, reaching 48 cents earnings per share. As of this writing, Nike stock (NYSE: NKE) was down more than 8% in premarket trading. Shares have tumbled more than 52% over the last 12 months as of Thursday’s close. ‘Changes to operating model’ on the horizon Looming potentially larger than Nike’s earnings report for its first fiscal quarter of 2027 was its announcement of a new operating model. The plan includes a warning that Nike will be cutting jobs at the company, though it doesn’t say how many or exactly when. In the announcement, Elliott Hill, president and CEO, said decisions would start in calendar year 2027 and he doesn’t “yet know the number of roles or specific locations of positions.” “The future will belong to companies that can move faster, serve athletes and consumers more locally, and invest more ag…