Nike Stock Falls 8% as Revenue Miss and Layoffs Loom

Nike shares fell more than 8% in premarket trading Friday after the company posted quarterly revenue of $11.21 billion, missing Wall Street's consensus estimate of $11.32 billion and announcing plans to cut jobs under a new operating model.

Revenue declined 4% year over year in Nike's first fiscal quarter of 2027, according to the company's results. The bottom line offered one bright spot: earnings per share came in at 48 cents, beating the predicted 43 cents.

The damage to the stock runs deeper than one bad quarter. Nike shares have tumbled more than 52% over the last 12 months as of Thursday's close, per CNBC's reporting on the results. The stock now trades near a 13-year low and ranks among the bottom 10 performers in the S&P 500. Last month, the footwear giant was removed from the S&P 100.

A new operating model, with fewer jobs

The announcement that may matter more than the earnings miss was Nike's corporate restructuring plan, laid out in an October 1 statement. The plan includes job cuts, though the company did not specify how many positions will go or when.

Elliott Hill, Nike's president and CEO, said decisions would begin in calendar year 2027 and that 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 aggressively in innovation," Hill stated. "To do that, Nike must make changes to become a more agile, efficient and athlete-focused company."

"This work will result in fewer roles across Nike," he added, "and I want to acknowledge that news like this creates uncertainty."

This would not be Nike's first round of cuts this year. The company confirmed roughly 775 U.S. job cuts in January, citing supply chain automation.

Geographic reorganization and a Bengaluru campus

The new operating model splits Nike's customers into three geographic areas: Americas; APGC, covering Asia Pacific and Greater China; and EMEA, spanning Europe, the Middle East and Africa. Nike will also build a new campus in Bengaluru, India.

The plan further involves what the company calls "supply chain modernization," a process Nike started over a year ago and one that is showing "considerable progress," according to Hill.

For investors, the restructuring signals that Nike's leadership sees a multi-year rebuild rather than a quick rebound. Whether an aggressive push toward local consumer service and innovation can arrest a 52% stock decline will define Hill's tenure and the company's standing among institutional holders who have watched it slide out of the S&P 100.