Just so no one naively buys into the grand vision or clever-sounding ideas. The reality is that the short-term stock bumps driven by the most simplistic cuts are the pinnacle of leadership’s so-called strategic thinking.
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I agree that it's all about the numbers, but in a different way than the OP is saying. I think that many tech layoffs (at Nike and other places) have a lot to do with the tax changes that went into effect in 2023 due to the legislation passed during Trump's first administration. Prior to that year, IT expenses for projects and development work could be written off in whole annually. Now, those costs have to be spread out over 5 to 15 years, which changes the bottom line. I suspect that Nike outsourcing large functions like ERP to Accenture is a way to get back to the previous tax model versus keeping the costs in-house.
This is an article about what I'm referring to:
https://qz.com/tech-layoffs-tax-code-trump-section-174-microsoft-meta-1851783502
The cost of building and maintaining the technology to compete is only going to go up. It shouldn't take throwing out 400+ people to understand that there are too many competing goals. Those goals come from too many expensive people at the top of the org making everything a priority. Subtract some of the expensive voices in the LT room and REALLY reduce the number of concurrent projects.
The stock bump yesterday had nothing to do with the GT layoffs. It was too insignificant to move the needle for Wall Street.
Expenses are tied to revenue. If sales or projections drop, costs should follow. EH sees the business differently from JD. He thinks the tech budget got too bloated, so he’s cutting it / moving the money elsewhere.