Sadly, employees are the ones paying the price. I spent years here thinking things would stabilize, but instead it was constant disruption and recurring layoffs. Management keeps experimenting, backtracking, and repeating failures, while workers are treated like disposable pieces. What a joke.
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@ka, like most people you don’t quite grasp what AI is going to do within just 2 to 3 years.
Just in the last 12 months it has evolved at a truly astonishing - and honestly somewhat terrifying - rate. Over the next few years people will, first at a slow but ever-increasing rate, see or experience that AI “Ah ha!” moment which finally clues them in to what’s coming. I had that experience for the first time just four months ago.
It will cause a tremendous amount of good. But also a tremendous amount of bad. Nike will HAVE to join the train to survive. Egos won’t have anything to do with it.
2 to 3 years. Max.
It’s simple. Leaders at the top lack morals and integrity. Self serving and toxic leadership that leads to decisions being made that aren't what’s best for Nike. Sadly you have fake teams that serve no real purpose and the leaders of said teams have an ego that’s so inflated they wouldn’t admit it AND they have to protect their favorites.
These are dated issues that go back many many many years. You can’t hide your inflated team and inappropriate behavior forever and be successful!. #resilience #dotherightthing
@dn I almost believed you until the AI sales pitch. AI has done very little for Nike and operates in the same space as ITC. Politically it is DOA, too many people getting kickbacks to allow it. And that’s assuming the technology works as presented which it doesn’t.
Agreed
If you don’t like layoffs OP, prepare for a wild ride ahead. Gross margin is now at 40.6%. You’d have to go way, way, WAY back - to when Nike was a much smaller company - to see margins that low. It had to have been sometime in the last century, if ever, since my 2000-2025 chart doesn’t even show margins this low.
What does this mean for non-finance people? Well, let me put it this way: it’s bad. Really bad.
Nike MUST cut expenses, and significantly, to salvage margins since that’s the #1 thing that moves stock prices. Nike is more than a little overstaffed for this situation and trust me when I tell you that leadership knows it.
I have no idea when the layoffs will come or in what form. What I do know is that Nike is not going to tolerate more margin compression simply to keep people employed. It doesn’t have that financial luxury.
Always have a “Plan B”. Keep 12 months worth of living expenses in your emergency fund. Don’t take on debt that would be difficult to support if you lost your job and had difficulty finding comparable work. Layoffs are no fun. And they’re an absolute disaster when you’re financially over-leveraged as so many people are.
Don’t even get me started on AI. That tech will suddenly arrive like a roaring freight train in about 2 to 3 years (max) and then the real massive layoffs will begin nationwide.
If any of this shocks you into attention…it should.
@c8
not really, it has been getting worse over time
as 'finance' or 'stocks' have become more of a focus
basically fake value
for example,
Under President Reagan's administration in 1982, the SEC implemented Rule 10b-18, creating a "safe harbor" that effectively legalized and encouraged corporate stock buybacks by granting immunity from market manipulation charges if companies followed specific timing, volume, price, and manner rules, shifting away from previous views that buybacks were illegal manipulation and allowing companies to boost stock prices, a practice now criticized for diverting funds from investment in workers or innovation.
@OP personally going back 45 years, Nike always treated people like Sh-t.
I think that is reflection of enigmatic Mr. PK's personality.
Now, they are treating employees like sh-t because they are too stupid and have no idea and lost.
I liken you to people in Bataan death march. If you die then they will throw you to the side of the road without giving second thought.
So don't be statistic my friend. You will have to survive to win
Very true! Meanwhile Phil and BOD are getting richer and richer while typical employee is dreading paying mortgage, applying for jobs or thinking about relocation. Nike is dead end of career unless your spouse is a Sr director son where or you are an a** kisser