Nike Shares Drop 10% as CEO Warns of New Layoffs — SkimNews
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- Nike's CEO warned of new layoffs next year, linking the cuts to a changing operating model at the company.
- Nike shares plummeted 10% after the company delivered a weak revenue outlook and confirmed layoff plans are underway.
- Nike announced a new restructuring alongside the layoff warning, per the wwd.com and additional coverage.
- Competitor stocks — Lululemon, On, Under Armour, and Hoka maker Deckers Outdoor — were hit in the wake of the Nike warning, per Yahoo Finance.
Why it matters: A 10% single-day drop in Nike wipes out significant shareholder value, and the selloff spilling into Lululemon, On, Under Armour, and Deckers shows the Street is reading Nike's weakness as a broader athletic-apparel category problem rather than a company-specific miss. A next-year layoff warning indicates management does not see a quick fix from the operating-model shift.
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