Nike Lays Off 775 Employees to Boost Automation Efforts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: stocktwits
- Layoff Announcement: Nike is laying off 775 employees, primarily affecting distribution center roles in Tennessee and Mississippi, further intensifying the company's human resource adjustments during its turnaround process.
- Automation Initiative: This layoff is part of Nike's efforts to enhance automation, although it remains unclear how exactly this will be implemented and the total number of distribution jobs in the U.S. is still unknown.
- Insider Stock Purchases: Following the company's latest quarterly results that exceeded Wall Street expectations, Nike's lead independent director Tim Cook and other executives purchased shares, boosting investor optimism despite a cautious outlook for the holiday quarter.
- Market Sentiment Shift: On Stocktwits, retail sentiment around Nike shares improved from 'extremely bearish' to 'bearish', with message volume increasing, indicating investor expectations for cost savings from automation efforts.
Analyst Views on NKE
Wall Street analysts forecast NKE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NKE is 76.11 USD with a low forecast of 62.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
14 Buy
7 Hold
0 Sell
Moderate Buy
Current: 64.990
Low
62.00
Averages
76.11
High
110.00
Current: 64.990
Low
62.00
Averages
76.11
High
110.00
About NKE
NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's operating segments include North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA). It sells a line of equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities. It also designs products specifically for the Jordan Brand and Converse. The Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball performance and culture using the Jumpman trademark. The Company also designs, distributes and licenses casual sneakers, apparel and accessories under the Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
