Thread regarding Nike Inc. layoffs

@ar moving to a “value” company and not a growth company. Best rid that from the comments ELT

It’s going to be financial engineering at first. That’s what Denton was hired for. If you heard him on the earnings call he was not afraid of Wall Street and told em how it’s going to be. He is not going to cut the dividend. He is going to cut expenses and reduce inventory. There’s a clear playbook he runs. Plan on Nike being a mature dividend paying company.

@ae "So why hasn't the stock price gone up after so many rounds of cuts" yep, because the old trick won't cut it. Need new management to come up with a plan that works

@a8 So why hasn't the stock price gone up after so many rounds of cuts. This thought process is exactly what is taking this company down. With back to back cuts they have just ki-led employees morale and loyalty. They may see a reduction in expenses but this will come bite back in the long term.

@a8 exactly OP's point. A plan like this may boost for a short term then fall back again - so it isn't really a long term plan

In theory, the "long term plan" is what they are announcing at investor day. Gone are the days when people actually working at the company are told before the rest of the world because we don't matter, investors do

That’s my problem, this seems like the strategy is just exit employees and hope the consumer returns. It’s focusing on operating profit instead of actually focusing on the product.

I get it, product is hard to create especially when you blew off the consumer in many channels. But the way to fix this problem is to invent the product. Listening to the consumer, regaining their trust. Pushing everything to India will lower costs but at what overall cost to the company? Nike is making itself even “less” cool.

The plan is to boost the stock price. Thereby the cuts