If they want so many long time employees gone maybe this is the better and even less expensive way to go, Instead of keeping people in a constant state of fear.
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It's starting to get that animal shelter vibe. Survive while waiting to be adopted by a decent, caring family.
@2vgq hit it on the head, every time there is a reorg, morale drops tremendously. It takes at least 3 to 4 years to get even back to flat... we're now about 2 years maybe a 1 year separate from the last reorg. So we're in the "I'm out phase" which usually comes after all the disrupted orgs that got stood up.
Usually takes another 2 years post this point to get back to the base line. At this point, even in a recessionary effort (say another 10% drop in S&P500). I can't see Nike making more layoffs... maybe a hiring freeze, but attrition has been higher than ever. PSP is probably gonna be meh which will push more people out the door.
Doing another "position cutting" reorg would be insane from this leadership team. They won't survive if that happens. We're already at maybe 70% capacity with several vacant positions. We struggle finding even the "top" positions we want to drive.
Excellent post @2vgq and i hope you did it on Nike time
@1geh…there aren’t any large layoffs at Nike right now. It’s just that people are still so traumatized from the last poorly executed reorg that they now live in constant fear. It’s sort of like when you adopt a pet that’s been abused. Even though it’s finally in a good home it might cower in fear for a long while every time you try to pet it. It’s pure learned instinct.
Layoffs do long-term damage to a company’s culture and morale. Especially with a company like Nike which historically, in decades past, has tried to avoid layoffs but nonetheless has had two significant layoff events in the last five years. With the last one being painfully stretched out over the better part of a year. Now with the economy appearing to slow down internationally and with every possibility that Nike could have some rough quarters ahead people might be understandably nervous about what could be coming. IMO Nike’s current leadership won’t hesitate for even a second to slash headcount by a few thousand employees if it means adding a few pennies to quarterly earnings per share. It’s well-known that our current CEO doesn’t fear laying people off like PK feared it.
Read the news: layoffs are now starting with hot companies like Twitter, Netflix, and others. Two weeks ago Forbes published an article, “Be Prepared For Hiring Freezes And Layoffs”. With the entire world being in the precarious political and economic position it’s currently in it wouldn’t take too much for things to go south fast. The Chinese economy is teetering on a “WTF!” correction. Putin is a psychopath who could do something desperate to further destabilize Europe. In the U.S. transportation by truck now costs $1/mile just in diesel fuel alone, interest rates are rising making all debt more expensive, the government has stopped handing out trillions in “free money”, and as we saw last week from Target and Walmart inflation is causing tapped out consumers to pull back sharply on non-essential purchases. All of this and more leads to a likely recession. Or worse, stagflation. The U.S. has never before had inflation greater than 3% and unemployment below 5% without a serious economic decline following it. While people may not understand all the economic Jargon they understand in their guts that “stuff ain’t right”.
So that is why you hear talk of and worry about layoffs.
If you know JD you'd know that this is his management style. Search for his interviews, there was one where he was proud of firing employees and relished that within a few years only 1/3 of the people who started were still at his management consulting firm. He loves keeping people on edge. To him, where's the fun of giving human beings peace of mind?
Are people being laid off now?
Who wants who to be gone?
If you’re senior enough and Nike wants you gone you do actually get offered a buyout. Or enhanced severance. Call it whatever you want…it isn’t the normal severance payout. Average Joes & Janes in the VALUES pay bands don’t usually get this. I’ll give you a tip though: if you’re ever laid off you should absolutely consult an employment lawyer before you sign any severance paperwork. Even if you don’t think you have any claims against Nike. Once Nike gets a letter from your lawyer there’s a very good chance that whatever severance you were offered will go up. It’s cheaper for Nike to pay you to go away than to be dealing with your lawyer for several months. Most terminated employees don’t do this but they should.