The Board of Directors of the Company approved steps to implement the program, which are expected to result in pre-tax charges of approximately $1.0 billion, which is in addition to approximately $0.3 billion of severance costs recognized in fiscal 2026 in connection with the March 2026 plan. These costs are expected to consist primarily of employee severance and other employee-related costs.
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The payroll thing is for compliance with WARN, and they still haven't filed a formal WARN notice. An email saying "in three months, maybe" isn't a sufficient filing for Oregon's state regs.
How many APLA employees are in Beaverton? That org. is probably going to be hit HARD given the combination with GC.
@e5 Well said. I wonder whether we’ll see lower severance and no extra time on the payroll this time. Easy win for the new CFO. It would be a betrayal of everything Nike stood for, but the die is cast: EH no longer cares about retaining US talent or his reputation. He’s in survival mode. His survival.
@cb You are making a couple of assumptions that might not be true. You are assuming a similar severance payout and the market trend has been for less severance. Your 8% number is probably low but it also assumes it will be evenly distributed across the global workforce. The reality is the US workforce will be the hardest hit since jobs are being moved off shore. The impact in the US could be 15-20% reduction if all of the layoffs happen here.
@cp tech is on life support after the 25 point reduction, 75 of current and the entire company would collapse overnight globally, so that's not happening
The new year will be biz focus no matter how much folks don't want it to be true.. they'll kneecap tech in the fall or 28
That’s about 25% of corporate employees. A lot less in Product, sure, but probably 75% of PHK Tech.
Given the supply chain and territory changes, there is a good chance that the $700M in FY28-31 could also be accounting for contract terminations, lease cancellations, heck, even the sale of Converse is still on the table. I'd guess that the $300M this FY is going to be on par with the GT layoff, then next FY it will be another $3-400M in HC reductions and the rest going to those other costs.
@ca it's a bit over triple the cost of the GT report and the GT layoff was 1.4k. so probably 4k-6k jobs gone spread across all departments so around an 8% total reduction worst case
How does the $1B severance compare to prior layoffs (e.g., 2024)?
Hopefully, it includes a significant amount for the senior leadership team.
Yep you're in the PACEmaker phase now.
RIP Portland economy because of the lost, good paying jobs
@bf likely finance, hr operations, supply chain ops. It’s going to get very very ugly. For anyone who has been here a long time. It’s worse than ‘09.
Sounds like Nike is doubling down on the India office and moving non-IT functions there. Any ideas on which ones?
That was where the tariff refunds went
will the last person in IT turn out the lights? They clearly looking to finish out that department as a US function and have it in India.
Just wow- Pace it out is the new slogan
There is no finish line.