Nike Stock Drops 6.7% as 2027 Layoffs Loom After Bleak Forecast

Nike shares fell 6.7% on Friday, extending a two-day selloff that has now wiped out more than 48% of the company's stock value in 2026. The drop followed a first-quarter revenue miss — sales slumped 4% to $11.2 billion — and a fiscal 2027 guidance pointing to a high-single-digit revenue decline, the second straight quarter of deteriorating expectations for the world's largest sportswear employer.

What does the latest quarter show about the underlying business?

Net income for the quarter reached $712 million, down 2% from $727 million a year earlier. Nike blamed declines in Greater China, partially offset by North American gains, plus persistent weakness in its Sportswear and Jordan brands. CEO Elliott Hill acknowledged the pressure in a note to staff Thursday: "We have more work to do in NIKE Sportswear, Jordan Brand and Greater China, and we're taking deliberate actions to strengthen those businesses the right way for the long-term."

How deep are the layoffs going to cut?

Nike has not disclosed a headcount for the next round, but the scale of prior cuts sets the benchmark. The company eliminated 775 positions at a U.S. distribution center in January and another 1,400 roles in the technology division in April — 2,175 jobs shed in 2026 alone. Hill told employees the next decisions "will begin in calendar year 2027 and beyond," and added: "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."

For workers, the practical signal is that corporate, tech, and supply-chain roles inside Nike carry elevated displacement risk through at least 2027, with severance terms likely tracking the earlier U.S. rounds rather than European or APAC equivalents.

What does the new "Pace" operating model actually change?

Pace is the restructuring vehicle, structured around three pillars:

• A target of $2.5 billion in cost savings by fiscal 2031
• A geographic reshuffle into Americas, APGC (Asia Pacific and Greater China), and EMEA
• Supply-chain modernization and a new campus in Bengaluru, India

Management will present the five-year financial outlook on November 16–17, which will be the first concrete read on how many of the "fewer roles" translate into specific functions — design, brand marketing, distribution, corporate overhead.

Why are top athletes walking away from Nike?

The brand exodus mirrors the financial one. Kylian Mbappé ended a two-decade partnership to sign with On; Lamine Yamal, Harry Kane, and Ousmane Dembélé have also left. On — backed by Roger Federer since 2020 — signed Mbappé the same day he departed Nike, signaling a direct competitor push into soccer. For designers, sponsorship negotiators, and athlete-marketing staff, the question is whether Nike can rebuild an endorsement pipeline faster than its cost base is being rationalized.

The company also exited the S&P 100 last month after 18 years of index inclusion, another data point investors will weigh before the November investor days.