Thread regarding Nike Inc. layoffs

@f1

Right Now TK would only have to pay estate tax on the dividend income of the stock for a year once PK passes.

It actually would be beneficial if the stock had stayed at 170 because it would of triggered a “step up basis” this would eliminate all of PK capital gains resetting the cost basis of all the families stock and if they really wanted to could sell all without paying a dime in taxes. Of course moving all those share that quickly is near impossible.

I agree with the other commentors that EH has a more rounded strategy that will put us on the right foot. But drip layoffs, a complete lack of promotions, and reduced company perks does not inspire confidence in employees to actually execute. The execution and employee management side of his tenure has been lacking.

Rip the bandaid off (dont taunt people with 2 months of dread) and cut the headcount in one fell swoop. From there, establish meaningful promotion pipelines and merit based raises. And stop falling for this RTO MBA bullsh-t that deloitte feeds. crying on camera while you take away company perks simply looks out of touch

Let’s not rule out the possibility of intentionally decreasing value over a 5-10 year cycle to enable a greater retention of class A (worth 10x in voting control) shares for the eventual transition from PHK to TK. So as to ensure Swoosh LLC maintains control of NKE.

Isn’t it possible that JD was chosen to make some absolute nonsense calls? There was no good reason to bring him in. eBay!? Pshh. He flatlined it during the same period Amazon sky rocketed. He was the perfect fall guy in a suit. Believable for almost everyone.

Pulling out of wholesale accounts? Leaving shelf space open? Not immediately or easily reversed… but could be done. It’s the type of thing you would do just before you need to pay the (estate) tax man. Defensible by saying we thought DTC would work.

Similarly, why else would you hold on to MF for so long? Value dilution right now is in the best interest of PHK, and in time TK.

Look at our decrease in buyback year over year. This would be the perfect time for it… but it increases EPS, and thus stock price.

It’s almost as if we’re literally doing everything we can to degrade value.

@eh Don’t worry too much about morale. With Founder’s Week and JDI Day coming up, people will move on pretty quickly and just carry on like nothing happened, fully drinking the Kool-Aid

EH is a million miles more capable than JD. However, the size of task is massive and I’m sure EH himself didn’t understand how bad things were when he took over. He has good strategy and is focusing on the right things but needs to stop ki-ling morale with constant layoffs and leadership changes. Give people time to actually execute on the strategy and stop turning Nike into Game of Thrones where no one knows when the script writers are ki-ling them off.

@dz despite bailout funds Intel was on the down. It only recovered because of execution on recent products like panther lake, Terafab etc. Money was not Intels problem, execution and meaningful wins were.

@dm

Intel is only back because you the taxpayer bailed it out lol

OP, do not confuse correlation with causation. JD was very very lucky.

Having said that, I do wonder if EH is CEO material. Does he have the bold vision needed?
Nike can win back. Intel is a current example. It's stock is at a 5 year high. Is the turnaround complete? No, but thinking outside the box has revived its fortunes.

I think Sprunk would have made bolder decisions and not enamored the low IQ folks. He would have made cuts and been more work than sales charm. Still love EH but he’s more of a #2 guy.

EH is a gullible.

He shouldnt have touched the org or the strategy, the 2024 reorg had caused enough chaos already. He should have allowed the dust to settle.

Now everythign is falling apart without control, no one knows what their mandate is and these rolling layoffs are forcing people into hunger games instead of focusing on getting back to the consumer.

These laser brains will learn that you cannot run a company with senior leadership engineering alone. there is almost no one left to execute.

Jd was an id--t. Typical consultant. All sizzle and no ability to execute and deliver. He ran every one of his companies into the ground with his boneheaded strategies. Watch out Stanford football. Arrogant and clueless guy. It just shows you management consulting is just bs. I will take the shoe salesman any day cause that’s what we do. Sell shoes , shirts and socks with a check mark on them.

@OP
'Educated at Ivy League universities vs no-name college'

you are citing a 0-integrity rotting ivy institution
the only skills they have are being connected to power,
scamming the financial system, and discriminating against white folks

'Worked at prestigious organizations like Bain, Paypal, Service now vs Nike only experience ( that too which he got by literally begging for it)'

paypal is a middleman site any regular business can set up
Bain produces nothing except financial scams
Service Now is another WeWork

Op you do not understand how things work

JD is singly responsible for one of the worst business strategies in recent history. The high of covid was not JD doing but riding nke into the earths crust was. His accolades and alma are lessened by his failures. They carry water for him

EH is unprepared for the moment and painfully unequipped to dig us out of the crater JD left nke in. He is also repeating the same morale and innovation ki-ling mistakes

The board and PK own this entire catastrophe decision for decision

I think EH got stuck in the trap of changing the ELT team and not focusing on what mattered.

Taking 2 years to put 'the right people' in place is not a good strategy, time is of the essence and wall street has lost patience.

There is one thing that matters most, and that is to keep wall street on your side

Wall street used to love nke, because nke always did what they said

Now that say turn around plan, and then say the said plan is taking longer than expected

Wall street dislikes that more than anything, hence stock drop, consumers take notice, downward spiral.

EH could have been good if he focused on making cool products with the current staff in place

but he didn't, instead of motivating and inspiring current leaders, he simply swapped them out with leader that he thought would align with him

but that's not a leadership quality, a leadership quality is making it happen but inspiring people to be the best and bring the best.

I think a seasoned ceo knows this and he was a 2nd choice defaulted in

It's a tough lesson to learn, and you only get 1 shot.

so now what? easy to criticize the past, how about complement the future? what's the next right move? Lots would like to know