Why did senior management hire so many people when it was clear economy was slowing? Could have avoided layoffs.
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Corporate headcount is not the same as overall headcount. Many of those additional 5000 were retail.
I understand the point you’re trying to make, but headcount alone doesn’t make it.
@ylr There are VPs and Sr Dirs getting laid off. I’m guessing the total expenses reduction that Nike has to hit is probably in the 8 figures. Only way to hit that target is salaries and benefits.
You’re absolutely right @weq.
I bet that our holiday sales are well below expectations after accounting for inflation. Leadership is making up the difference with layoffs.
This is a short term bandaid (<1yr) forced on us by terrible business decisions (telling retailers F-U, who then filled their shelves with our competitors).
Our leadership’s arrogance is ki-ling the company. They know they’re going to be shown the door, they don’t care about long term planning.
@ylr. Send JD packing and shut down and sell half the buildings for pennies on the dollar. Could have offset all this. Leadership is completely incompetent at running a successful company.
Everyone that's left after this, let's make leaderships life he-l. F them.
@ylr+1pVMGEYi Because cutting travel expenses and parties won't sound as se-y on the earnings call to Wall St.
@weq+1pVMGEYi Yet some people still have millions in travel budget and holiday parties planned on our calendars. How bout being strategic with your investments instead of spray and pray?
I bet 10 VPs taking a 10% cut for the short term could’ve saved all the jobs yesterday.
This whole take reeks of innocence. Like somehow the leadership cares about saving jobs.
Here's the hard truth. This is a Wall St. move. Somebody did some math that went along the lines of:
Current Sales Figures + Layoff Headcount = Profitability Equation for the earnings call and a stock price gain
The suits will be happy. The leadership will see a bump in their stock performance. And all it cost was working everyone right up until the holidays and then letting loads of employees go.
We are all just a number in this math equation for Wall St.
"Why did senior management hire so many people when it was clear economy was slowing?"
Sadly, it's because the kind of people Nike puts into senior management roles tend to be "empire builders." It's easier to feel important when you're standing on top of a big pile of warm bodies.
How have we gotten that bloated when huge chunks of the company were supposedly on a hiring freeze? (Granted, my org is plenty bloated to begin with so I’m not surprised).
@ipz+1pVMGEYi When you leave Nike. Seems to be ongoing these days
I really hate Nike.i do regret coming to Nike......when this nightmare be over?
@kv1 I disagree. It’s a headcount thing. Once the last financials came out and showed although (1) revenue and gross margins were up slightly (2) Expenses were up more and (3) net income was down, I could see the writing on the wall. To correct this, companies will reduce headcount. I’m sure there is a target dollar amount that the company is told to reduce expenses. A company could try cutting costs here and there but the biggest expense is salary and benefits. The strategy part is probably them saying (1) what groups could be eliminated, then (2) what individual roles could be eliminated to hit that target dollar amount reduction. Either way this stinks.—from low level finance person who has seen layoffs in other large corporations and was involved in doing calculations during layoffs there.
Christmas wish that senior leadership would be held accountable (fired) for over hiring.
It’s not a headcount thing, it’s a strategy thing. When they change strategy, some roles are no longer needed. Some roles may change and then need different skillsets.
I don’t know if it’s true but heard that 5k of the 11k at WHQ is new since Covid. If that’s true, then wow! Nothing against new people as new fresh minds are always welcomed, but this could explain the drastic culture shift the past few years. They can blame it on WFH, but I think a lot is at play here. Again, if that’s true.
Sorry to say it, but it was to check off a lot of boxes. A lot of good people let go to make room too.
People are too scared to push for answers or be on the chopping block themselves. Wish people would advocate for something better
Nike doesn’t care about people. The company wastes so much money in the name of growth, to fatten already fat pockets for clothes that look like the DSG in house brand and sneakers that feel like bricks.