Nike is preparing for major layoffs. Are we next?
13 replies (most recent on top)
Personally, I don’t think Bjørn is finished making changes. But layoffs? I don’t expect any major ones. Maybe in Digital, because that team is clearly being asked to pick up a different ball than they were running with the past few years. However, layoffs still complicated due to stronger labor protection for teams in Europe.
At the same time, all signals throughout this year have been that results are better than expected/promised to investors. Pay attention to the quarterlies, the Board signals a lot of information there.
This doesn’t mean layoffs can’t happen, but we don’t have the same storm clouds in Herzo that are gathering over Beaverton.
Any word on potential layoffs for adidas? I’m planning on putting my notice in the next month but ideally I’d love to be laid off and get a bit of severance. I’d really kick myself if I quit right before I could have been served my walking papers and a nice cheque.
@3wjw+1qhBxOM9 Actually, I’ve worked in the industry for over 30 years for multiple brands.
@3iur+1qhBxOM9 They cut the Portland training Bu because it was easier getting rid of people in the US than Germany. They started the training Bu to get rid of people in Germany and this was likely always the plan.
Things always centralize and decentralize. As another poster said, adidas is in a decentralization trend , which will swing back at some point. Nike is in the reverse (for now).
Their layoffs have nothing to do with having too many people. They hit their numbers and margins are high. It’s just a pivot in strategy to course correct because they went to hard on DTC and they are losing market share in womens.
Adidas has been busy laying off people the past two years already and they keep going. It’s not just Europe affected but globally many departments has been touched. Finance, HR, supply chain, e-commerce and rumors are that digital is coming. The new trend is to have new global hubs located in cheap labour countries: Colombia, Portugal and India. So I wouldn’t be surprise Nike will do the same
“The difference is the mindset of adidas is European and prefers to avoid layoffs at all costs while Nike sees people as expendable”
Tell that to PDX’s Training BU. Oh wait you can’t because they all got laid off because the Germans couldn’t stand letting the Americans create product that was better than theirs.
@3wjw+1qhBxOM Who said layoffs were from corporate HQs only? No one at Nike is saying that. What’s your source?
Unless you’re comparing all offices 1:1 your numbers are arbitrary and meaningless and yes adidas employees produce less revenue and profit than Nike employees - saying they are over funded is based in no facts.
I find it ironic you’re saying so when adidas revenue has been basically flat since 2017 and Nike has almost doubled. Don’t even get my started on brand equity and market cap.
@2haq Wow, you clearly don’t work in the industry. Retail employees are largely exempt from the entire exercise. It is a CORPORATE LAYOFF. I find it either incredibly dishonest of you, or naive at best that you don’t understand that. So yes, you LITERALLY can pick those three locations as those are the three locations were 95% of the layoffs will occur. Your back of the matchbook math is utterly ridiculous.
@2haq You literally can’t pick and choose single locations- that’s not how it works. Adidas has a different dispersement of of power and decision making across global locations than Nike does. All of adidas HK leadership sits in Nike Portland, as does most of their China product creation.
Also: did you count the La office in your Us numbers?
Nike 2023 total employees 83,700, or 1 for every $611,911 of revenue
Adidas total employees are 57,016, or 1 die every $409 972 of revenue.
You could then argue that Nike employees per capita produce 50% more revenue than adidas employees
@2ssm not accurate. Nike has over 12000 in Beaverton. Adidas has 5500 in Herzo. Nike has 2500 in hilversum and adidas has 1500 in PDX. Nike has 2000 in Shanghai and adidas has 700. Nike has more than double the corporate employees at their hubs.
@1ugh Not exactly. Nike is twice the size in revenue, only about 25% more people, and has better margins. They’re not laying people off because they have too many, it’s because they aren’t growing as fast as they planned.
The difference is the mindset of adidas is European and prefers to avoid layoffs at all costs while Nike sees people as expendable
FYI read : https://www.oregonlive.com/business/2023/12/nike-layoffs-raise-questions-but-answers-remain-elusive.html#:~:text=Nike%20has%20not%20filed%20a,hands%20meeting%20about%20staff%20reductions.
“ in 2018, Nike introduced the Air Max 270, among a handful of well-received products that sparked Nike sales in recent years. Nike’s annual sales are up 41% since 2018, while Adidas’ are up 3%.”
No one is ever truly safe and we may have some layoffs. But a difference between the 2 companies is that we are chronically understaffed and under resourced and they are chronically overstaffed and over resourced. It isn’t the same situation at all.
I'm probably worried over nothing, but it doesn't hurt to ask.