Hi haters - this fiscal Nike has reduced the work force by roughly 4% while revenues have been flat vs last year. Conclusion; productivity per employee has gone up; these lay offs do make sense.
A continuation of stream lining the org and setting Nike up for the next 10 years of growth only makes sense.
@kk that's the problem. We lack vision and long term planning. We opt for layoffs because it's the easiest option to free up capital when our stock is going down the drain. We forget that the employees that we let go have context and knowledge domain expertise. By the time we realize, we're going to try and patch it up with rehiring but getting ramped up and onboarding takes time. At the end of it, we would have lost capital, opportunity cost and market share. I genuinely want to know who is driving our transformation and strategy? Are there not any business case studies we can look at? How many companies have successfully pivoted away from third-parties to DTC? Even Apple sells their products at other stores. How many companies have succeeded in GC? For a company of this caliber, I would have expected that we have some risk-based assessment when making these plans. I'm sure Nike would have its own Harvard business case study one day at this point.
You could lay off the entire innovation and product team and wouldn’t see the impact for 12-18 months but, hey, productivity would be up!
@bk and all commentors, finally true statements, company is overproducing cr-p by leaders who dont have a vision. The board should be more resonsive if fhey carw but they make plenty of money and the jobs easy. There is no q0 year strategy, they cant even make day to day decisions, a long term plan, laughable.
Everyone could be 100% productive, but when you’re churning out sh-t product, and have no strategic vision of where you’re going, it doesn’t mean anything. Your mentality is unfortunately shared by a large portion of the employee population, which confuses being busy, with being effective.
There is no more money, period. Why the layoffs... When the rates were low, capital was everywhere, and everyone was hiring.
what pi..sse.s me off right now is what happened after the layoffs. The shuffling around of employees is making everyone mad. Again, given Nike's culture of systemic favoritism, that is the number one thing that comes into question during layoffs and after layoffs. At Nike, favoritism is number one, above your skills and everything else. You can have higher qualifications than your senior director, but if someone above you considers you a threat, then you will be placed at the bottom of the scale. That is why Nike is bleeding talent continuously.
Just curious, as I’m still trying to understand what we should focus on in FY27. We’ve heard that we’re not chasing short-term wins because we’re setting the foundation for the next decade of growth, but we’ve also heard Win Now…
Dream on baby. I'm no hater, only very disappointed. I work at Nike Belgium. And I'm fed up, by all you saying it's getting better... It's not, not now , not tomorrow, not next year... Here in Belgium we see a lot of panic football. And layoffs, lots of. And it's all to late, Nike missed the boat, and it's all managements fault. The last five years the top led us to the sla-ghterhouse. Fire all those incompetent self-centered, good for nothing.......
@a9 100% in agreement. We should challenge our leaders and ask them to publish the leaders to IC ratio before and after the re-orgs. Two VPs now in SCPT ?? Really ?? And the person in the newly invented VP role hasn't delivered any business value. There is limit to favoritism but then for Nike there is no finish line ..
I'd check the quality of the data those numbers are based on and the validity of the algorithm this metric is fueled from.
Should’ve read: “Attrition per employee has gone up.”
There, fixed it for you.
@OP you sure talk like a number person, maybe a spy from accounting dept sent by upper management. LOL
Nike is lifestyle company not amazon! Metrics and number does not mean shet!
Productivity remains at record lows and continues to drop. As always we're borrowing from the future. Be it overproducing once limited AJs or refocusing tech to merely keeping the lights on rather than building new revenue streams.
It works. Until it doesn't.
Yeah they should have removed layers of directors and senior directors not to mention VPs. If only I had a penny every time one of these so called leaders said 'single threaded'. Yet the org structure is anything but single threaded! Looking at the SCPT org chart, it confirms that new roles were invented so directors and snr directors had a place to land.
I would like to know the SD and director to IC ratio before and after the recent layoffs.. I bet it's worse! Means we're more top heavy than before.
People are not interested on current designs and comfort. More loyal fans are moving to on, hoka, asics... We can see more returns then sales
Too bad our stock doesn't agree with you - why haven't we seen an uptick since the layoffs?