One sr.dir told me that these lay offs will take 2 quarters 😭
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It will start 60 days from the date of the email announcement in December.
I’ve train saying this before and people get butthurt for whatever reason.
Ya’ll are a much of doomers. If you make it through and stay a while, this is just the first of many. Nike doesn’t hire that well some times, and with all the rights in place for employees the only way to effectively purge the ineffective is a mass layoff. It’s good business logic. Wreckless for the employees lives, but nonetheless an effective business strategy at scale.
Ya’ll know there’s plenty of fat to trim if you’re being honest. If you see the fat and realize you’re it, then yeah do all the things.
Otherwise stop worrying. You’re good.
What are you talking about about? Calling it a "forward-looking statement" is a get out of jail free card.
If you think they have an obligation to do anything by Feb 28, read the disclaimer in the earnings release.
@urr that is incorrect.
First you need to understand what “forward looking statement” means:
“Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements.” The entire purpose of noting it’s a “forward-looking statement” is to allow wiggle room in the event whatever was proclaimed changes.
Second, @rog below is correct. As an accounting matter the charge can be booked in Q3 if desired even if the action has not been completed in its entirety by end of Q3.
Please stop posting if you have no idea what you’re talking about.
Nike is a publicly traded company. The CEO made a forward-looking statement on an earnings call that he was going to incur $400-$450 million of layoff expenses and Q3. They have a regulatory obligation to do this before the end of February.
The plan is baked and ready to meet the criteria noted. The plan was likely generated this summer or fall. You can bet they thought about the criteria needed to book it. Buckle up for late Feb and q4.
https://www.thelayoff.com/post/@szw+1qJMQ5SS
yep from the head of NXT this isn't over and not even for NXT. I was in the meeting and I'm not sure if he shared to much. He didn't have a good read on the room. Telling folks there may be more, isn't going to go well. He gave the timeline of end of the year (may).
They did 2 out of 5 and have only 1 month left 🤣
@hvs is wrong, @rog is correct. Simple Google search. It has nothing to do with cash changing hands. Copy-paste'd here for the lazy, link at the bottom ..
The following criteria must be met in order for a company to accrue a liability and recognize a related expense:
The plan must be communicated to employees.
Management, with the relevant authority, commits to the termination plan.
The termination plan identifies the number of employees to be terminated, the related job classifications or functions and locations of the terminated employees, and the expected completion date. ( It doesn’t have to get down to details such as the names of the employees, but you need enough information that you know the number, what job classification, where they are located, stuff like that.)
The termination plan establishes the terms of the benefit arrangements in sufficient detail to enable employees to determine the type and amount of benefits they will receive; (the employees can kind off estimate what they will get) and
Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
https://www.gaapdynamics.com/insights/blog/2023/01/27/gaap-chats-accounting-considerations-for-layoffs/
Heh. VPs don't know anything..they're all panicked too
Most of the Sr. Directors don’t know anything. I won’t believe what they say until there is some official news.
If they start the layoffs process in q3 they can take the restructuring charge is my understanding. It doesn’t need to be completed. They can complete in next quarter.
A charge cannot hit the books in Q3 if the layoffs aren't in the same qtr. Anyways the $400-$450m was an estimate and it's possible they don't take the hit all at once.
The severance charge will hit in q3 per the earnings call. The actual activity will be in both quarters is likely given they haven’t started yet. They are slow. That’s a lot of HR packages to generate.
I, too, heard that they are trying to spread the severance cost(s) over 2 quarters vs it all landing in Q3. Typical JD bs
Or it’s as disorganized as it seems, lay offs are known news, there’s no gag order on speaking about it they just can’t say what spaces will be affected
No one actually knows, and those that do can't and won't share.
So we went from done by February 28 to basically the end of the fiscal year. Yea these layoffs are starting to look a lot bigger than we thought