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Nike CEO Warns of New Layoffs Next Year Amid Operating Model Change
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Nike CEO John Donahoe has warned of new layoffs next year as the company implements a changing operating model. The announcement comes as Nike's revenue misses estimates, leading to a significant drop in its stock price to the lowest level in 13 years. Multiple news outlets report that Nike plans to become a smaller company as sales slide deepens. The company has announced changes to its operating model and expects to cut jobs as part of a restructuring effort. The layoffs are part of a broader strategy to streamline operations and respond to declining sales performance.
Source report
Nike has announced significant restructuring plans, with CEO warnings of additional layoffs in the coming year as the company adapts to a changing operating model.
Key Developments
- Revenue Misses Estimates: Nike's stock fell sharply after the company reported revenue that fell short of analyst expectations.
- Job Cuts Expected: The company confirmed plans to reduce its workforce as part of the restructuring.
- Stock at 13-Year Low: Following the announcement, Nike's stock dipped to its lowest level in 13 years.
- Sales Slide Deepens: The company is planning for a smaller organizational footprint as sales continue to decline.
Official Announcement
Nike, Inc. has formally announced changes to its operating model, signaling a strategic shift in how the company will operate moving forward.
Market Reaction
Multiple financial news outlets reported the news, with Yahoo Finance noting the stock decline, the Wall Street Journal highlighting the company's plan to become "a smaller company," and Oregonlive.com reporting the stock's drop to a 13-year low.
Sources: WWD, Yahoo Finance, oregonlive.com, Wall Street Journal, About Nike
Source
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Part of this Story
Nike shares sink over 8% on revenue miss, full-year decline forecast, and job cuts