Thread regarding Nike Inc. layoffs

(OP response) Thanks all for the responses. Firstly, thank F that Elliott is back. It'll be a game changer. I hope he makes some major changes. A quick scan here for him would be useful, but I am sure he knows the atmosphere, and is a people-centered guy who has followed from the sidelines. He bleeds orange.

With respect to this post, thank you. I (OP) feel validated and heard. I am the biggest advocate of diversity but in its broadest its sense, not the push that MM has presided over. For example, neurodiversity (I have ADHD which is a f'ing superpower btw), gender (my family rock that one), POC (if only considering all the colors, not just promoting African Americans for representation).

Nike needs more international diversity. It it needs a better mix of people of colour (again, broader than African American - I heard the same thing about an ELT member saying) so find good people, and develop the talent pool. It needs to continue investing in all, and where necessary in women (but I honestly think this is less of a issue now - tell me if I am wrong from a "climate" not "weather" perspective).

Equity means giving under-represented people a leg up and investing in them, not promoting them without preparation - that's the worse thing you can do, as if they are unprepared and fail, they perpetuate things.

Good luck all under new leadership. You deserve it. I hope bright times ahead.

While the intentions of DEI can be noble (though it does court a lot of race grifters and self promoters), the execution is inherently flawed.

You cannot solve society's issues by starting at the very of a perceived problem and making everything equal. When you have an issue, you need to address the root causes. DEI does not address root causes...it simply waves a wand and says x% of leaders need to be black/LGBTQ/women/etc.

If we want to lift up our fellow Americans, and especially our fellow Black Americans, we need solutions that address the root causes for their end-state inequity. Issues like fatherless black homes. Issues with our our legal system and how justice is not always equal due to a variety of factors (typically not race hatred or prejudice btw).

Imagine if the NBA set racial and ethnic diversity targets for 2030. But companies are doing it, so why not the NBA? MLB? or NFL?

If Nike truly values both sports and equal representation, shouldn't we push for more diversity in professional leagues? Or is there a reason why sports should be treated differently?

DEI itself is not a problem but the way how Nike executes is terrible. It's like NBA forcing each teams to increase their non-black rosters.

These DEI targets affected not just only promotions but also influenced decisions about who to retain or let go during the reorgs. After all, reorgs are the most opportune time to make significant demographic changes.

Addressing discrimination with different forms of discrimination isn’t going to keep employees happy… but then again, ultimately, the focus never was on genuine diversity, equity, and inclusion - it was on creating a facade of inclusiveness so we could market ourselves to the public as such.

Horribly shortsighted by JD, given that much of this talent ended up joining competing brands. This is why so few people actually vocally support DEI and why many companies are starting to retreat from it.

There have been many short sighted decisions recently because we were nowhere near the 2025 diversity targets in many departments. If you want to know why someone who checked a box mysteriously pulled off getting an exec role even though they lacked experience or talent… well…….

“But as a result, for over five years, most leadership appointment decisions were made from a deliberately smaller pool of candidates.”

And there lies the problem…

The focus hasn’t been black only. It's been about meeting the 2025 DEI targets, which include both gender and racial/ethnic diversity. The emphasis has been equally on increasing representation of women.

2025 Targets:

• 50% of the global workforce to be women (excluding retail and warehouse workers)
• 45% of leadership positions to be women (VP level and above)
• 35% of the global workforce to be racial and ethnic minorities
• 30% of leadership positions to be held by racial and ethnic minorities

VP compensation was linked to meeting these targets by 2025.

https://www.thestreet.com/investing/nike-outlines-diversity-goals-through-2025

But as a result, for over five years, most leadership appointment decisions were made from a deliberately smaller pool of candidates. Go back and tally up and review the leadership promotion emails from the past five years to see the pattern.

Nike’s stance on diversity essentially means “black” only. There is zero focus on any other racial or ethnic group. Partly due to the contribution of our magnificent Athletes who help grow the brand but mainly driven by MM and JS woke policies with no attachment to reality, let alone the reality of business.

I previously sat in the highest level talent meetings with ELT when ”Asians aren’t diverse” was said out aloud. Apparently they are too rich and well represented to be diverse (Despite contributing to 60% of global population). Everyone was too scared to counter the point.

This is why Nike has lost its soul. No focus on the consumer, no focus on acquiring or retaining the talent needed to inspire the consumer. Just carve up everyone into demographic boxes and place the “victim” at the center.

Nike gave up on its employees and consumers. MM led the way. Everyone else was too scared to do anything about it. Look at Nike now.

Repost from different thread…

“The issue is that Nike linked executive compensation to achieving highly ambitious DEI goals, which led leaders to make decisions primarily to maximize their own pay. While diversity itself is not the problem, these incentives essentially created discriminatory quotas that undermined meritocracy. This approach resulted in the rapid promotion of underqualified individuals into key roles that make crucial decisions and set strategies for the company.

https://www.cnbc.com/amp/2021/03/11/nike-sets-diversity-goals-for-2025-ties-executive-comp-back-to-them.html
“

Bill Ackman, activist investor whose hedge fund invests in companies which have “lost their way,” recently acquired a large stake in Nike and commented on DEI just three months ago: https://youtube.com/watch?v=bkCpQk_K_jg&t=1m15s

well stated @1mtv+1uvvFeol, leadership has indeed locked itself away into the 5th floor ivory tower AND has lost the focus on truly leading with the consumer proposition....the issue starts at the top, but unfortunately none of the ELT members have been removed from their posts ... instead thousands of those who have been trying to run this company day in and day out were pushed out to get to that $2B. would have been faster with a few of the top brass instead.

I’m a former VP who was laid off this summer and fully agree with OP.
I worked around the world for the company for over a decade. When I came back to WHQ it was shell of its former self. Couple of points:

1. Inclusion is not diversity. Nike had a check box exercise towards diversity based on visible US-centric immutable characteristics. However, WHQ was not, and is not, inclusive towards those of different points of view or cultural backgrounds. Where are the people from east Asia? Africa? China? Beaverton is a global backwater, but it should be the epicenter of youth culture.

2. Leadership has locked themselves away. Nike is a company of sport and global youth culture. Non of the leaders had any empathy for this consumer, nor any culture-defining attitude. Senior people were hollow, fake and lacking in any ability to lead with vulnerability. It had become a desperate status game, devoid of focus on the true purpose of the brand. It was a Kabuki theater.

It is sad and can only be fixed by fundamental change in the leadership. Not just the CEO, but probably 7-8 people from the senior ranks need to go. Why Phil Knight and the board let it get to this is a mystery.

And to be clear - diversity (real diversity on a larger scale), that works together, brings so many different ideas to the table. And when they work together well, that’s when you get the magic. Like the 10 principles that were before the maxims, the last one said “If we do the right things we’ll make money near automatic”.

There’s a need to return to this mentality.

Well said. It is not a global company on the inside it feels more like a U of O frat extension for people born and raised in the US and have never left