I've worked at multiple corporations and understand that layoffs come with the territory. But the way Nike is going about this right now is unbelievable. We're really expected to "control the control-ables" with this hanging over our heads for the next several MONTHS? On top of everything else going on in the world and our personal lives?? Not to mention the leadership emails that just came out only gave me more questions than answers.
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Donahoe was brought in specific to execute this lay-off. He is being justly compensated for his risk. If it goes poorly his time as a top tier CEO is done. He will be gone in ~2.5 years.
Option 1: whispers of layoffs start. Over the course of 6-8 months they become louder and louder. Everyone knows what’s coming. People stress out and stop being productive. Then the layoffs happen. People go back to business as usual.
Option 2: layoffs are announced. People are like “wow!” Rumors of what’s coming start immediately, but nobody has specific details. The layoffs start when we were told they would start. More rumors, but no specifics. People definitely losing motivation, but also acknowledge we seem to be sticking to the 3-4 month timeline.
I’ll take option 2.
NIKE E and S Bands: If you are lucky enough to hold any vested options, you'll have to exercise ALL OF THEM by the end of the year and incur the massive short-term capital gains taxes and declare it all as income in 2020! That combined with your PTO payout and any severance pay will guarantee you'll be in the very top tax bracket for the ta year so you can give half of everything back to the government!
Seems like OP would have rather been on the street without a paycheck back in April rather than having a paycheck now.
I was around for the layoffs in 2017 and they were handled in the same way: A slow rolling process, starting from the top and working on down to rank and file employees. It makes sense as the "new" organization won't really start to take shape until they've gotten rid of the layers of upper management and can determine who will be a good fit from the rank and file. Expect to be moved around if you're not laid off. This s—s because there really is nothing to communicate to workers as things are continually evolving. The silver lining is that you have a good few months to prepare your resume and look for other opportunities.
July 24 (Reuters) - Nike Inc:
- NIKE INC - FY2020 COMPENSATION FOR CEO JOHN J. DONAHOE II WAS $53.5 MILLION
- NIKE INC - FY2020 TOTAL COMPENSATION FOR FORMER CEO MARK G. PARKER WAS $18.2 MILLION VERSUS ABOUT $14 MILLION IN FY2019
They have a plan. It's called let all the VP's pull the golden parachutes and see what's left for the rank and file. Then play favorites throughout the company and let as many of the over 50 and female employees go because they cost more than (so many of them have kids, YUCK!) plus a new employee who believes access to the Company Store makes up for entry level wages will be so much easier to underpay and intimidate.
I just wish Nike would rip the bandaid rather than prolonging this. It almost seems like they don't have a real plan and are figuring it out as they go.