Thread regarding Nike Inc. layoffs

2dos: The person who mentioned $60K/year specifically said that would be the AVERAGE cost. You know how averages work, right?

Yes, senior staff will get well above $60K in severance. But for every VP or Sr. Director who gets a six-figure severance package there will be 10 people in the V to E bands who get less than $60K. Some will get much less. This is how you arrive at an “average” of $60K.

And if you do the math of $200-$250M in total severance at an average cost of $60K, that gets you to about 4,200 employees. Also remember that 4,200 employees is roughly 5% of the company. And 5% is actually a low amount compared to several other Fortune 500 companies that are currently trimming their workforces by as much as 20%.

In other words I don’t understand why you think 4,000 is too high of an estimate. If anything it may actually be too low of an estimate. I think the final number of layoffs is going to be somewhere between 4,000 and 5,000. The math supports that estimate too.

The cost of a severance package for a VP or Sr. Director with 10 or more yeasr at NIKE is a LOT more than $60,000. Some people will be offered packages that pay them their salaries for 6 months to a year. 4,000 total layoffs is not realistic.

Trevor Edwards was still relevant ...I thought his "Achromatic Mail" was played out long ago.

Stock price on April 1 2011 19.20
Stock price on January 23 2020 100.40

That is a GRAT return for sure.

@buh+164OFZMG

Go out the parking lot and see how many cars are parked in the reserved spots during the Summer months. Guarantee you the spots that are vacant 100% of the time belong to the very same people you speak of.

@1skr, I 100% agree with you and this guy is the worst of the bunch.

Nike took a turn to the dark side when the euros gained so many management positions at WHQ. The current CMO us a prime example of this. He has a direct line to the disgraced TE. He, like many people of that regime is arrogant, a bully, a shallow thinker. Purge Nike, for Christ’s sake, cut the really obviously terrible execs!

They could get rid of their CMO and lose a bully with a sizable salary. They’d lose a ton of toxicity.. and that would be a win for all.

Go to org chart and see the VPs and Sr. directors who have no direct report (except for assistant), porbably they are the one to departure.

Can't happen soon enough for some of the VPs I work with

its our "Customer Acceleration Plan" :D

LOL...Nike is so good at branding..even their life ruining layoffs.

Based on an average severance cost of 60,000USD per employee (will like be a more based on band), at $250m we are looking at around 4,000 layoffs

Notifications are happening today at VP level...

https://www.cnbc.com/2020/07/22/nike-shakes-up-its-executive-team-announces-job-cuts.html

Nike said the changes it is making will lead to a “net loss of jobs across the company,” which will result in pretax, one-time employee termination costs of roughly $200 million to $250 million.
A spokeswoman declined to tell CNBC exactly how many jobs will be affected but insisted that this is not a cost-cutting move and instead is meant to invest resources in stronger parts of the business.
Nike President and Chief Executive Officer John Donahoe had hinted when Nike reported earnings last month that the retailer was looking to streamline its business with a focus on digital, as it took a hit from the Covid-19 pandemic.