Nike Needs More Job Cuts

Nike posted better-than-expected Q4 earnings, but not everyone’s cheering. According to CNBC’s Jim Cramer, the swoosh still needs to slim down its staff if it wants to stage a real comeback.

Earnings Up, Efficiency Down?

Nike’s $0.14 earnings per share and $11.10 billion in revenue beat analyst forecasts and gave Wall Street a confidence boost. Estimates had pegged EPS at $0.13 and revenue at $10.72 billion.

The stock rose 28% since late June, bringing total 2025 gains to 6%. For most companies, that would be reason enough to celebrate. But for Nike, it only tells half the story.

Cramer Says Cut Deeper

“I was thinking that Nike would have another layoff,” Cramer said during a recent segment. “I think that they're still too bloated.”

He’s not alone in that thinking. Earlier this year, Nike already cut about 2% of its global workforce as part of a $2 billion cost-saving plan. But Cramer argues it wasn’t enough.

His main criticism? Nike’s size has become a drag. Layers of management and operational bottlenecks are keeping the brand from moving at the speed of its younger, leaner competitors.

Losing the Athletic Edge

Nike’s woes go beyond just payroll. Cramer pointed to Dick’s Sporting Goods’ recent acquisition of Foot Locker as a sign that Nike’s once-dominant distribution strategy needs an overhaul.

Once considered untouchable in performance wear, Nike now faces mounting pressure from brands like On Running, Hoka, and even newer players in the streetwear-techwear space. Despite still holding significant market share, it’s no longer the pace-setter.

And with inventory pileups still reported in some global markets, the company’s ability to pivot quickly is more crucial than ever.

What’s Next?

Nike has shown it can hit short-term financial targets. But long-term competitiveness requires more than quarterly wins — it demands agility. With pressure mounting from Wall Street, and internally from investors like Cramer, another wave of job cuts could be back on the table.

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