Nike Retail Traders Stay Bearish Even As Tech Layoff Buzz Seeps In

Nike (NKE) has cut some jobs in its technology division, the company confirmed to Bloomberg News on Monday. The layoffs are part of broader turnaround efforts, but the move has yet to win over users on Stocktwits.

The retail sentiment for Nike continued to be in the 'bearish' territory, with some users calling it the worst stock in the market.

However, some users believe that, with Nike's global brand recall and a turnaround underway, a bounceback this year is possible.

Bloomberg News reported the sportswear giant has cut staff in its strategic enterprise and corporate functions departments, which help manage business processes.

Nike is shifting some of that work to third-party vendors, the report added.

Nike's tech division was roiled in 2023 when the company's chief digital information officer left abruptly amid bribery allegations. 

The move comes weeks after Nike reorganized the management structure and appointed new heads for departments, including strategy, human resources and sports marketing.

Nike has struggled in recent years due to a miscalculated shift away from multi-brand retailers and rising competition from emerging brands.

In October, Nike brought back veteran Elliott Hill as its CEO, and he has since led a series of changes as part of a broad turnaround plan.

Hill has said Nike will fix its relationships with retailers, refocus on its traditionally core areas like basketball and running, and sell more premium products.

In March, Nike reported quarterly earnings and gave a weak outlook, partially weighed by the impact of new U.S. trade tariffs.

Nike stock is down 18% year to date.

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