Will next week be the week?
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I'm not an accountant, but ASC 420-10 seems to suggest
"As a general rule, severance benefits provided pursuant to an ongoing plan will be accrued when probable and reasonably estimable, whereas one-time termination benefits cannot be accrued until the terms of the benefit arrangement have been communicated to the affected employees and may need to be spread over a future service period through the termination date."
https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/pensions-and-employee-benefitspeb/peb_guide/Chapter-8-PEB/85_Restructurings_and_onetime_termination_benefits_20.html
The financial charge can be taken in q3 as a reserve and charged against the P&L . The layoffs can be done later as needed drawing against that reserve balance in Q4. So don’t expect it to be done quick. It might even bleed into the new year but ideally you want to do this fiscal. If people quit no payments needed. That’s where 4-1 comes in. Any reserve not used will be released as savings.
@2dbr+1qDI9a1y they started planning this late last summer when Bain arrived. Initially target was to execute layoffs in Nov but they weren’t ready so pushed to Feb. I’m close enough to be 99% certain first big wave will happen between now and mid/late Feb.
@2tnc+1qDI9a1y precisely.. “in our second half”.. meaning through May 31. Recognized in 3rd quarter.. this is an Accounting thing. The fact is leadership doesn’t have their $#@T together enough to pull this off by Feb 29 (leap year they get one extra day 😉). Be realistic, Exec Leadership are flying by the seat of their pants and have no clue what they are about to do - doesn’t feel well planned out at all.
@2iie+1qDI9a1y "We anticipate a restructuring charge of 400 million to 450 million in our second half, primarily related to severance costs which will be recognized largely in the third quarter."
https://www.fool.com/earnings/call-transcripts/2023/12/21/nike-nke-q2-2024-earnings-call-transcript/
People keep thinking the earnings call confirmed it will be done by end of Q3... it won’t be. All they did was signal to the street it’s coming (no firm commitment) and it will (at a minimum) go through YE.
@1lzp+1qDI9a1y You might want to listen to the earnings call
My guess is Nike is waiting until the end of the quarter to assess how many employees left due to the 4/1 (anyone who moved away and isn't granted an exception that are trying to stretch PTO/remote work weeks) then they will reevaluate actual layoffs from there.
My guess is that it will trickle over the next 5 months. It will be done in waves rather than the 2021 layoffs with a massive shift. They’ll do a larger wave at first to reset some leadership/organization roles. Then they’ll shift the people under them. And then there will be some orgs who are late to the game and go last. I also suspect to see entire teams gutted or redistributed. No insider information, just a gut feeling as a long-term employee who’s been around for layoffs before. My advice to all is to be prepared. Get your resume and LinkedIn up to date and remind your external network you are around. It su-ks that we have to constantly be on guard, but you need to constantly be on guard. Most of us will get laid off in a re-org eventually; that’s the nature of Corp America. The days of us getting old and retiring from a company are over. Best to just come to terms with that. I dont mean to sound like an a-hole, but it’s best to not obsess over when this happening, and rather just accept that it will happen. Best of luck to everyone. <3
It will be in phases. Expect any big moves first like site closures, divestments and business reorg. Then the smaller ones later in departments for people on the list. That’s my guess.
In 2017 some areas (like Tech) had layoffs the day MP sent announcement, others it took months.
No one knows
Oh come on. Do not create unnecessary panic and stress for everyone