Any word ? Rumor or fact? My source isn’t reliable but sense says it is.
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Can’t speak to whether or not the rumors are true, but the math (and the street) points to it.
The only scenario for Nike as a business (not the culture or employees like you and I) to survive is to GREATLY cut costs. Find a way to move as much product as possible, with the least overhead… to maintain some degree of margin comparable to the good old days.
What do you think will happen first?
- Executives take a pay cut
- Layoffs
- REALLY deep layoffs, with a re-hire of cheaper talent
As a business Nike will need to pencil out how to survive this. People are probably working on it right now, looking for a few $B to save on overhead. The easiest path is going to be gutting what the c-suite would determine as unnecessarily over-paid employees (at the Director level and below)… and re-hire with cheaper talent at salaries far below what they’re paying now.
This played out a bit in last year’s layoffs, and we all have witness a rehire effort… but with teams ending up with more junior and less qualified people… but, the salary expense was greatly diminished.
This isn’t the first time we or other businesses have done this. If you’re over age 45-50 at Nike and not a SD; you’re nervous. Because you know your salary puts a target on your back… why keep this old guy/gal when we can replace with a new college grad that is thankful to replace you with a $110k salary.
The problem though… is in the US; this is illegal. And age discrimination.
Nike will absolutely not cut compensation for execs. It will go up as a result, as a nod to making the business more profitable (not better, or more efficient… just a near-term 5-10% street hit… that will make PK happy) that will later have grave consequences for the health of the business long term.
Unless we get buddied up with DOGE, Trump, and whatever else is happening in DC… we will see another restructure. It might be more strategic. It might not be in one shot. But it will happen… not just to reduce headcount. To greatly reduce headcount, and restructure with more junior and less costly employees.
Anyone over ~$150k in salary would likely be at risk (again Director and below, not up), and likely the first filter a consulting firm would apply.
There really isn’t anything stopping this, save for organized labor (unions).
Good thing I took the severance package from Radio Shack last week.
I just got let go from CompUSA. Package was pretty good. 6 months of 15% off of accessories.
Exists are happening this week. With all of EH being “transparent”, it su-ks that layoffs are happening and it’s this weird open secret.
Anyone that’s been here more than a year should know to always have your resume up to date and an eye to the outside.
Also, I saw overweight consultants laughing and taking pictures around campus too. Really dislike seeing them on campus, you just know messed up change is coming
there should be in CF, CERP & SEC... still waiting on when it will happen. there is so much redundancy. anyone knows, about the plans?
I think we will keep seeing “micro layoffs” .. nothing big, just some cleanup of efforts.
There’s a reorganization going on but I think majority if not all the exits happened last week.