Nike shares plummet 10% after weak revenue outlook and layoff plans underway

Nike shares plunged roughly 10% in premarket trading Friday, extending a second straight day of declines after the company reported falling revenue and said it plans to lay off staff.

The sell-off ties to two specific disclosures: a revenue decline and a workforce reduction. Together they point to a company cutting costs while top-line growth shrinks, and the market is pricing that combination harshly. Back-to-back losing sessions suggest the first reaction did not clear the selling pressure, and Friday's premarket move indicates sellers were still in control before the opening bell.

Interpretation: layoffs can signal management is protecting margins, but they also confirm that revenue pressure is serious enough to warrant structural action. A 10% premarket drop on top of the prior day's decline implies investors see the weak outlook as more than a one-quarter blip. The size of the move suggests the revenue outlook, not the layoffs, is the main driver of the repricing.

The Friday premarket move was reported by CNBC, which also noted the stock has now fallen on consecutive sessions.