NKE Stock Layoffs: What to Know About the Latest Nike Job Cuts

Nike (NKE) signaled plans of continuing job cuts next year as it posted its fiscal Q1 earnings yesterday evening, after featuring a disappointing outlook for its full financial year. The footwear giant has already eliminated more than 2,100 tech and distribution roles across two tranches in 2026. 

As investors responded to the quarterly miss on revenue and guidance for a high-single-digit decline for fiscal 2027, Nike stock crashed to a low under $33 this morning. 

What the Layoffs Mean for Nike Stock

Nike’s planned layoffs are a part of Pace, the company's newly announced multi-year operational transformation aimed at consolidating its four global operating divisions into three. 

While management confirmed that this third wave of job cuts will commence next year, details like the number of roles that will be eliminated were withheld, leaving investors uncertain about what to expect. 

According to Nike, its broader restructuring is targeted to deliver about $2.5 billion in cumulative cost savings through fiscal 2031, but markets are fixated more on near-term friction. 

With Greater China sales continuing to disappoint and the company not expecting re-acceleration anytime soon, NKE shares plummeted to a fresh five-year low on Friday. 

Bernstein Remains Bullish on NKE Shares

On the plus side, Nike told investors on the earnings call that after multiple downward revisions, numbers are now de-risked. 

And that proved enough for Bernstein analyst Aneesha Sherman to maintain an “Outperform” rating on NKE stock, with a bullish $45 price target indicating potential upside of nearly 40% from here.

She believes the footwear giant will likely regain momentum as management continues to “clear aged inventory in Lifestyle/Jordan and rightsize the China wholesale business.”

NKE currently pays a rather lucrative 4.91% dividend yield, which makes it even more attractive as a long-term holding. 

Wall Street’s View on Nike

Other Wall Street analysts also seem to believe that Nike shares’ year-to-date decline has gone a bit too far. 

While the consensus rating on NKE sits at “Hold” only, the mean price target of about $45 suggests potential for a significant rally from current levels. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.