It's more than obvious that this ELT only knows how to deal with any issues through layoffs. It feels like they're not even bothering to consider any other options anymore. Drop in profits? Layoffs. Shareholders not happy about whatever? Layoffs will cheer them up. Another controversy? Layoffs will take the attention off of it. And on and on. They have to know this isn't a sustainable business strategy.
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@1hi agree with you. As a woman with a strong performance ratings (prior 2 years were exceptional and highly successful), I do think many decisions were made based on personal preferences and/or selected people who could be manipulated. Sure, some of the people who were let go were poor performers and weed it out but there are so many awful leaders still remaining.
Unionize. It’s far past time.
Expediency. It's the easiest and quickest thing to do. Rid yourself of real estate? That takes time. Implore the sales team to move more units? No guarantees and your need healthy retail partners. Offshore jobs at lower salaries? Takes too long and finding overseas talent is a hit or miss proposition.
So, announce a "reorganization" or "steamlining" to get rid of a bunch of domestic payroll. If your HR org is constantly gaming it out via CFE ratings, you can do it in a matter of weeks. Let accounting do their magic and, voila!, better than expected quarterly numbers for Wall Street!!!
Layoffs are an opportunity for a company like Nike to weed out anyone that is seen as expandable. Trouble is people who should have been weeded out long time ago have developed adaptability and created networks that keep them flying under the radar. They also have protective big brother networks that act as a cover and firewall for them. If you try to understand the logic behind layoffs, you won’t. Because there’s reason other than to reduce the bloat and keep the “favorites” in place. The 2020 layoff is not an exercise in cost reduction, it is simply creating room for a new crop that “fit” the Nike mold - a reset so to speak. This will happen again, in 2-3 years or less if the economy doesn’t bounce back fast enough to appease the stockholders. In the mean time it’s the old timer “chiefs” and a few Indians doing all the work with fear and anxiety to boot....
That is not happening. They are not keeping the good people. They are letting go strong women and anyone else that isn’t their friend. It’s disgusting.
It isn't the only option, but it is when the company is bloated with many levels of middle management and inefficiencies.
MP did not manage the HC appropriately and now this is the result. Streamlining processes and building efficiencies were thwarted each and every time because some middle manager wasn't getting the credit, it would impact his/her mediocre kingdom, or he/she didn't "like" the person managing it.
I don't think there is a choice other than "some" layoffs BUT I do think there is a choice to keep the good people and fill the vacated jobs with those good people. To be clear, layoff toxic people and fill the roles, if needed, with people who have had a history of good, quality hard work.