Made official this morning-more details coming from HR later today. Last day of employment for all childcare workers will be end of September. Paycheck of 10/1. Parents being informed this morning. Phone call with teachers this morning was devoid of emotion or genuine empathy for those losing their employment. Preset script, no live Q/A or opportunity to ask questions. Leader on the call diverted any real conversation regarding this situation to HR reps. It felt like this was done this way so they can filter questions and respond back at a later time after the response is premeditated. Details tbd on severance package. This is all very “Nike” and a predictable outcome of this situation- nonetheless it’s what many have come to expect from a corporation that has no soul left. SAD!
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Y’all won’t be seeing any of the same “WHQ perks” your privileged selves were used to with this new regime. I work in Memphis and can finally say we have a CEO who sees us. Thank you JD!! Please wipe out all the old HR and WDC leaders.
Would love to know if they are having a garage sale of their materials from the daycare, would love to go shopping for the school where I work.
reminder - CEO is making $54 million
@4ujo+1658WjvQ yes it was mismanaged from a coat perspective but in all fairness, they didn’t have to manage a P&L like a stand-alone business so they just focused on quality. They had 200 employees and teachers for just 550 ish kids. And no teachers in the market would ever get the pay and benefits they got at Nike. So that’s why it cost the same for parents, yet still was subsidized so heavily from the company. If you think Nike’s SG&A growth should be out-pacing our revenue growth (which it has been), then you are sorely mistaken and the company will be run to the ground.
Nike is like our government. They claim there's no money to help the needy but there always seems to be billions of dollars to blow on fighter jets or when corporations come with hats in hand.
@6eac - with all due respect, you clearly have no idea what you are talking about.
Oh, and with regards to “Nike being in a serious financial situation”, that is the best comment so far..
Wow people’. You have no clue. I worked in finance and saw the huge costs Nike paid. You really think the teacher/child ratios were consistent with the market? Nope. The Nike teachers were amazing but thats because they had way more staff than could ever be sustained in the market. Nike’s childcare cost for families was as much or more than most other providers even with a huge amount of subsidy from the company. If you moved to Endeavor or any other provider, you’d see big differences in ratios of children per teacher. No doubt NCDP was amazing- but given our current climate, I can’t believe families are complaining. Nike is in a serious financial situation so be grateful for your job if you have one. You may not soon.
Nike cutting childcare has zero with the current layoffs. Yes, both layoffs but not for the same reasons.
I agree with the other poster. It doesn’t seem feasible for Nike daycare to have lost money given the high tuition relative to private daycare that needs to pay its own rent. If they did the payroll was full of fat cat administrators or it was the most mismanaged daycare in the city. Private daycares charge less yet are somehow profitable even while paying rent to a commercial landlord. I know what the rates are as a I have paid at Nike and two private big name daycare chains here. As for waitlist my kids had to be on waitlist for nine months to get in. That was the price of convenience to work but it didn’t generate savings for me. I paid more at Nike.
What people don’t realize about this whole closure is that there is very limited capacity available in Portland for daycare. When the biggest player on the market exits suddenly where do the kids go? 500 plus kids. Sure 150 per month is a nice perk if you can find daycare at all. Instead of say accelerating the outsourcing with Endeavour or working with existing providers to expand capacity the employees were just dropped. So where do the kids go? If the parents can’t find daycare well the parents might bring them to work or work from home with a toddler screaming in the background. With most households needing both parents to work daycare isn’t such a luxury. If you’ve never been stressed about daycare you might be a one percenter, someone lucky enough to have family in the area or someone who will get smacked upside the head by this issue when you have kids. Getting daycare is very much a blood sport in Portland.
Pretty typical of Nike to take a "perk" and turn it into a profit center. Anyone who eats at any of the cafeterias can tell you you're not saving any money versus going off campus to eat at a sit down restaurant. Like the child care centers, the overhead is much lower for Nike to operate a cafeteria versus someone who is running a restaurant, yet this doesn't translate into savings for Nike employees.
The planet that knows how to do mathematics. One tiny example;
20 kids, in one classroom. 2 teachers, one associate teacher.
20 x $1400 / month = $28000, or $336,000 per year. Even if the class teachers made $150k in total (they don’t) that would still leave over $150k, to cover overheads.
The buildings are paid off. Clear you have never set foot inside...They would need to be completely redone to be made into working spaces.
They have always said they subsidize it, but that is either not true, or very limited. They charge more tuition than private profit-making daycares. The child:staff ratio is no different. They own the property and the land, whereas those external companies even have all that rent etc.
Oh, @4zfy+1658WjvQ... On what planet do you think parents paid for the entire thing? Childcare has always been subsidized at Nike. While I see ZERO value in the immense number of resources/consultants/time taken to figure out a solution, It was EXTREMELY expensive for the company and took up buildings that could allow more employees to be on campus...
@3qhy - yes we were taken by surprise, because the WD+C team have been working on the new daycare expansion(!) plan for at least 18 months or so. Dragging the parents along... “ok, we are still working on it, more to come, more to come...”
They have informed time and time again how they will include the parents as much as possible in the whole process... then suddenly they sc-ap (effective immediately) the entire program.
It was not a financial burden for the company. It was not some free benefit. The program was one of the most expensive in the entire region paid 100% by the parent.
I'm surprised so many people seem to have been taken by surprise by this news. Just shows how out of touch with reality Nike employees have become. Childcare was like a perk on top of a perk on top of a perk, but people seemed to think they were a given. I remember my manager spending most of a 1:1 bragging about how they got their kid in. Probably spent more time working on that than her actual job.
It needs to be asked, parents- would you rather the teachers lose their jobs or you lose yours? We can all appreciate the value of the relationships built and the emotional challenges, but your whining on an initiative that has been years in the making reflects on you. Childcare is not a competency of the company. It is a (limited) benefit. Current parents- keep those on the waitlist in mind with your diatribes. Also, 1800 towards your childcare is pretty dang nice. Let’s count blessings, yeah?
What about the plans around offsite childcare facility with Endeavor Schools that will have twice the capacity of onsite childcare. Is that off the table as well now and all parents are without childcare post 10/1?
Yes, it’s difficult for those who were in the program to give up perks and the privilege they were used to. There will be lots of emotion and it’s understandable- but we’re in a crisis where race and socio-economic divides are increasing. I don’t agree with a lot of what Nike does, but this decision is the right one.
It doesn’t mean everyone will be happy- that’s impossible. But the leadership team is taking care of their employees who are on the front lines and paid lowest in the market- and probably where there are the most people of color. Of course it would be nice if there was endless money and every employee could get fancy daycare, but that’s not reality given the financial state of the company.
The other fascinating thing is that the world is changing and all companies will be investing less in their real estate. Large campuses with over the top amenities are on the way out. Employees can work from anywhere and the way to attract the best people is not through location-based benefits and moving people to headquarters. Having money that you can take advantage of wherever you are based is the future.
I feel for those who are losing their jobs and the families who have to get used to a new type of care, but without endless funds, this is the only right thing to do.
To the parents: If you can’t figure out who will care for your child, then maybe you shouldn’t have had one. You made the choice to have a kid, you deal with the consequences. Nike puts the rubber on your feet, it was your job to put the rubber elsewhere. You had it better than most for a long time, and now you must come back to reality. Deal with it. Generations before you did, and generations after you will too. Let’s not forget, people lost their jobs here, so quit whining about your little drool machines.
To those who have lost their jobs: It sounds like there are a lot of entitled Nike kids in need of care right now, time to start that business you always wanted to. Best of luck to you all.
@1sel - so it is cool for the 500+ (?) families to suddenly have no daycare, with all other local options pretty much full as is? Is it cool for 3 and 4 year olds who have been there since they were 4 months old to suddenly lose their incredibly caring teachers and contact with their friends? I wish you were at out dinner table this evening to see how our child took the news... Heartbreaking.
It was a shame the capacity was so limited. They had spent considerable time planning to expand the center partnering with a national partner. It was to be off-campus, but close enough and at least double the capacity. We signed up our kids to the wait list about 4 weeks after learning we were pregnant. We still had to wait until the kid was 9 months old to be accepted. But yes, we were eventually lucky to get in.
For your equality argument - so you think Nike should close the state-of-the-art gyms and swimming pool at WHQ (because employees in the DC don’t have access to this) and offer every employee a free elliptical instead?
Working at WHQ brings certain additional perks. It also gives you 8 months of rainy weather
If they were smart, they would’ve kept to the new expanded off-site daycare plan, and in addition offer this up-to $1800 (per year) benefit to those not based in Beaverton. I’d say they can afford it, if JD is getting $50m+ for his 100 day learning and listening tour (traveling the globe on the corporate jets) and then laying off xxxx employees. Heck I would’ve done that for $40m.
Good to hear that they're going to make childcare benefits more democratic. The old way only deepened this have/have nots culture that you ran into everywhere working at Nike.
The daycare was so expensive and didn’t serve many kids. It was only helpful if you worked at WHQ and if you got in. I spent years on the waitlist - never got off- and it was unfair. Now they are going to give $ to help with daycare costs for all employees (including retail and DCs). Way better. This is equality.
1% worldwide is $34,000 a year. Y'all are 1%ers. The guy making the shoes in Bangladesh? Those childcare workers could be feeding 10 of those families. The fat needed to go.
People laugh and joke but this is a big deal. Nike attracted a lot of talent with that nice campus and perks like this one. The virtual recruiting and home office world may not be kind to Nike moving forward. That was a competitive advantage for them to seal the deal on prospective talents.
there's a huge waiting list for daycare, even before the kid is born to the swoosher. I left nike 9 months ago, even before that I heard FTE staffed daycare was on the way out
What?!?! That was one of the best benefits at Nike.
What most employees don't know about the employees from Child Development Center are fully educated and have either a BA or an AD in early childhood education, and families will soon see the quality of care Nike CDC had compared to others.
These individuals aren't just employees they are family will continue to be. Each and everyone strived during the hardest time of this quarantine from weekly/daily zoom call meetings or drive-by to say hello, and were rudely told through the call- "to start winding down virtual classroom meetings, and say goodbyes." Extremely heartless conversation that last 10 minutes and that was the last goodbye from Nike leadership.
@OP+1658WjvQ. That is a perfect post. These teachers and administrators are/were family. They took care of our beautiful babies. Changed countless diapers. Helped teach our babies potty training. These amazing humans made it bearable to go back to work knowing my kids were in the perfect setting. Was it more than other daycares? HELL YES! Did my husband and I give a sh–? HELL NO! Nike made going back to work after maternity leave so much less stressful. Why??? Because of the amazing women and men who took care of our babies while we flew the Nike flag.
It was with great hope once ES left the company that his pet project would hit the skids and we would figure out a way to accommodate all families on the wait list.
It’s unfortunate all around. I’m
Blessed to have had my kids be part of this wonderful family of Nike employees! From my family to the CDC teachers and administrators thank you from the bottom of our hearts. Your dedication is not lost on us.
Most people who work for Nike are not 1%ers j #@? *ss. The Child Development Program served a purpose of convenience for both dads and mom's. These teachers were more than diaper changers. They took the on parenting roll for these kids during the day. It was comforting to parents knowing there child was on campus with them. This was a hugely popular program for more than 15 years. At least Kapernick keeps his endorsement. For now.
To clarify employees pay for daycare tuition. It’s not free and actually costs more than other daycare. The only benefit was time savings from closer pick up and drop off. I paid 1600 petmonth for one child. Some benefit. The issue was the plan was the transition to a new outsourced set up. Instead they closed it leaving people hanging. That’s like your landlord evicting you effective immediately not in say three months.
@slt, a little empathy would go a long way! These are still people who will be without a job in tis climate.
@cog - No, it's actually different than the plan previously communicated to parents. A lot different.
That's a project that's been in the works for years and communications with parents and staff started last year including $ info and options for the teachers.
If a shoe company is going to cut some fat to prevent essential personnel layoffs, seriously, childcare services has got to be it. No one is going to quit their job because Nike stopped providing daycare, because how much more 1-percenter can you get? It isn't as if there aren't another 30 million other kids out there whose p–py diapers need changing.