Nike’s Tumultuous Restructuring Drives 40% Drop in Trading Volume, Stock Ranks 154th in Market Activity

Nike (NKE) fell 0.18% on August 28, with a trading volume of $580 million, a 40.97% decline from the previous day, ranking 154th in market activity. The stock’s muted performance coincided with ongoing corporate restructuring plans announced by CEO Elliott Hill, which include layoffs of less than 1% of its corporate workforce. The cuts are part of a broader realignment strategy to refocus the business on sport and athletic culture, reversing prior organizational shifts under former CEO John Donahoe that divided operations into women’s, men’s, and kids’ segments.

The restructuring aims to streamline operations by forming cross-functional teams centered on specific sports and athlete needs, according to a company statement. While the EMEA region and Converse business remain unaffected, the move signals a strategic pivot toward innovation and deeper engagement with core consumer markets. The realignment follows a February 2024 round of layoffs that eliminated 2% of global staff, or over 1,600 jobs, amid broader cost-cutting measures.

Internal communications indicate affected employees will be notified by September 8, with most changes effective September 21. U.S. and Canadian corporate staff will work remotely in early September to facilitate discussions. Hill’s leadership has emphasized reinvigorating Nike’s product innovation pipeline and rebuilding relationships with retailers and wholesale partners to counter declining sales trends.

Query limit exceeded.