Nike Lays Off 775 Employees to Boost Profits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Yahoo Finance
- Layoff Announcement: Nike is laying off 775 employees, primarily affecting distribution center roles in Tennessee and Mississippi, aiming to reduce labor costs to enhance profits and accelerate automation efforts.
- Market Share Challenges: With sales trends below normal over the past two years, Nike has lost market share to competitors, necessitating multiple rounds of layoffs to reestablish itself as the world's leading sportswear brand.
- Management Changes: Under CEO Elliott Hill's leadership, Nike has undergone several layoffs in 2024, previously announcing cuts of over 1,600 positions, highlighting the challenges faced during its turnaround efforts.
- Long-Term Growth Strategy: Nike stated that the layoffs are designed to reduce complexity, improve flexibility, and support its path back to long-term profitable growth, despite recent setbacks including a data breach affecting its brand image.
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.
