The company has done very well in the last few years. What happened that there is such a disruption in the market that they need to cut so many jobs? It seems like things were going so well. People are back on campus. Lots of construction. Updates to building. What am I missing?
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there are some U bands that make 150k which is the same some E bands make. higher end for E bands is about 200k. S band for senior director is about 250k
@1uee+1qTP0P37 Lots of the CA employees signed up for the remote work plan, so they are not required to go into the office.
Not sure why Nike wouldn't force them back into the SF office. Maybe Nike is just planning to lay them all off, so they aren't bothering to go through the motion of pretending to keep them.
whq had to rto 4:1, people laid off for not relocating, but california doesn't?
@1vri+1qTP0P37 YES! Close the SF office!
I was on a call with someone there lsst week. Thry said it was a ghost town and despite 4:1, nobody was showing up at the SF office anyway.
Shut. It. Down.
@swd+1qTP0P37 Your U band to VP replacement is way off.
u band at 125+ bonus + healthcare, insurance, etc puts total cost closer to 200k for the company per U band employee. That’s 5-10 U band per 1 VP at 1M TC, not 100.
Serious q: how effective are remote sr dir and vp? Is dwo working? 🫣
why the fu-k they are hiring in california? this might be a already hired position posted for greencard purposes. This id--tic guy RAT hired even SR directors on H1B.
Here’s another one where CA requires salary listings
https://dev-jobs.nike.com/job/613411?from=job%20search%20funnel
Also verified on Glassdoor
https://www.glassdoor.com/Salary/NIKE-Director-Beaverton-Salaries-EJI_IE1699.0,4_KO5,13_IL.14,23_IC1151576.htm
@1lyw+1qTP0P37 I’d say it’s fair. I know many E band at 200 take home plus bonus and equity put them closer to 3. Sr director at 4-6 would be a reasonable assumption
600k is too much. It’s more like 400k loaded with benefits. That’s cost to company. That’s not what the person brings home. Could be more with options. But remember for any role you have to add psp and benefits so add about 50 percent. So if we eliminate a bunch of vps savings come fast.
@1hwn+1qTP0P37 2021 was an anomaly of extra DTC consumer spend during Covid and our costs are still lower than 2020 after layoffs, and all other companies in the industry. There is no justification here
Fully loaded wages for a Senior Director is about $600K, including all benefits. This is much more than total comp I.e. base pay + psp + stock options/rsus.
It certainly seems that role elimnations are intended to restore investor confidence in NKE. Interesting to see that our operating margin has shrunk every year since 2021, while SG&A has grown in the same years 2022 and 2023. If all of the new hires in 2021 and 2022 have not led to a proportional increase in income, then 2024 is the year to stem the bleeding.
At higher levels lots of comp comes from stock options and grants. Look at sec filings.
Does a VP make $1M gross salary?
What are the non-IT salary ranges for:
Sr Director
Director
Senior Manager
Manager
What about the different grades of VP?
@jve+1qTP0P37 You can try and justify it any way you want but this isn’t something you can look at in a vacuum:
Nike Inc Net Income in the 4 quarter 2023 grew year on year by 18.56%, faster than the Nike Inc 's competitors average income growth of 4.05 %
Nike: gross profit margin: 45.98%, operating margin 14.29%, net profit margin: 12.94
Adidas: gross profit margin: 47.28%, operating margin 3.24%, net profit margin: 2.72%
VF: gross profit margin: 54.51%, operating margin 13.78%, net profit margin: 11.71%
LuLu: gross profit margin: 57.01%, operating margin 16.5%, net profit margin: 10.89%
Nike’s impact per employee is also much higher than anyone else’s
Nike: $51.469b revenue, $5.07B net income, 83,700 total employees = $614k revenue and 60k net income per employee
Adidas: $23.34B revenue, $-0.227B net income, 57,016 employees = 409k revenue and -4K net income per employee
LuLu: $9.186B revenue, $0.855B net income, 34,000 employees = 270k revenue and $25 net income per employee
It’s worth noting that from a percentage ratio Nikes layoffs are planned to be the largest as well.
Apple, market leader never has layoffs so don’t get me started on this being necessary to win , it’s about capability for vision and long term strategy and valuing and empowering people.
@jve+1qTP0P37 So still double what it was in 2020 and laying off the same amount of people. 2021 shouldn’t be benchmarked because of the anomaly peak in Covid for everyone.
You can still argue that Nikes margins are by far better than every other company combined who seem to be laying off people last, not first.
The fact layoffs are happening while business class travel is going strong is disguising and tasteless. If 2021 margins were hit when travel was banned one could argue that it isn’t needed
man they hired so many VP's and SR DR and DR from kohls. Some of them are completely duplicate roles.
Eliminate all kohls positions + BATC Center. they will save directly 1$ billion for sure
Our operating income has been declining for a couple of years:
2023 5.915 B
2022 6.675 B
2021 7.231 B — peak
2020 3.115 B
2019 4.772 B
Income = Revenue - SG&A - Cost of goods sold (very very broadly)
Layoffs (eliminating positions) shrink SG&A very predictably. Profit margins are not enough if the company is increasingly obese.
So yeah, eliminating a few VP positions will really help, like $1M per position cut. To the moon!! 🚀
Travel, buildings and such are somewhat immaterial. Sga is driven 80 percent by wages. There are too many overpaid execs on the books. How many u bands can we hire if we dump one ELT member? Like over a 100 to 200. How many u bands with one Vp like ten. You get the picture? We are massively top heavy on comp. That’s what driving costs up. Looters and fat cats .
Late stage capitalism, the top will ring everyone else dry while they still can and make off like bandits
The donkey comment was hilarious. Thank you for that laugh today.
But to answer the original post - let me introduce you to JD who collectively with other execs have put the company in a very precarious situation. His only way to react is to show up as the grim reaper. Thanks for nothing a--hole.
OK babydoll, the reason we are having layoffs is because profit margins need to be higher.
The only reason nike exists is to make money for its owners. Y'all with your fancy titles need to remember this... every employee is just a servant including the JD, who is the servant leader.
It's time you learnt the truth.
Said this before and will say it again. Nike has the highest profit margins in the industry, by far. Layoffs are because of greed and poor decisions and the inability to think long term with strategy
@wql+1qTP0P37 Costs could also be business class travel, every freaking catered event and the remodels of the buildings that keep happening but hey, people are expendable
Adidas has negative profit margin and no layoffs , what gives?
Layoffs because revenue is growing more slowly than costs. So either grow revenue faster or cut costs. The dummies can’t get revenue to grow as there s no innovation and lots of competition. So therefore cut costs to grow profit for Wall Street. Why have costs grown? Too mich hiring and a top heavy org full of overpaid fat cats. It’s not U bands driving this. It’s wasteful spending. This has been an issue on the pl for some time. Have you ever looked at what the higher ups get paid?
If someone is trying to make a point with AI drivel… I think you’re really making the point that it’s not mature enough to companies to rely on, and management has their heads in the clouds.
@ceo+1qTP0P37
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Okay Dr. Phil...go hug a donkey.
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Too long did not read
The global athletic shoe market is a dynamic and ever-evolving sector within the broader footwear industry. The athletic shoe market has been characterized by innovation, changing consumer preferences, and a strong emphasis on performance, style, and sustainability. This essay explores the key factors shaping the current state of the global athletic shoe market.
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