Thread regarding Nike Inc. layoffs

No need to worry about severance

One of the most important reasons Nike severance is generous - and will remain so - is based on a cold but practical consideration: there is a direct causal link between amount of severance provided and subsequent employee legal claims for wrongful termination.

Nike provides above-average severance not because they’re “good guys”, but because generous severance substantially reduces legal liability.

Suggesting that Nike will instead look around at what other companies are doing is silly. Nike has NEVER based its severance on what other companies are doing and they aren’t going to start now. Aside from that, Nike has already revealed it plans on spending close to $1,000,000,000 on separation costs. That huge sum doesn’t at all jibe with any narrative that Nike is suddenly going to reduce the amount of severance is has been paying as recently as a few months ago.

If it looks like I’m suggesting some people may not know what they’re talking about…it’s because that’s exactly what I’m suggesting.

@c9+1m45h0cp5 explained it perfectly.


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| 21 views | | 5 replies (last October 10) | Reply
Post ID: @OP+1m48zhrtw

5 replies (most recent on top)

I hate to tell you but that’s not a hot take. That’s literally the reason of any severance. It’s not a “we’re sorry”. It’s a “you give up all future rights to any claims or litigation upon signature” payout.

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Post ID: @x2+1m48zhrtw

@OP if in no need to worry about it since there is nothing you can do to influence it than you are right.

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Post ID: @hm+1m48zhrtw

Spending a lot of money on people who will no longer be employees makes no business sense. Saying that Nike won't do something because they haven't done it before is naive at best. The company is in a very different environment than ever before where revenues and net income are declining, inventory is going up, and demand is weakening. They are going to be frugal with the cash they have on hand since the prospect of replenishing those funds is weaker than it has ever been for the company. Nike's restructuring is relying heavily on inputs from consultants who quite often use severance reduction as one of the cost saving targets. Nike sells products that people can live without in a world that is constantly becoming more expensive and difficult for many people to meet their basic needs. Nike has taken controversial stances that has alienated large portions of their potential market and these won't be easy to win back. Everything is about cost now and severance is a big one. Believe what you want.

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Post ID: @h9+1m48zhrtw

You're also limited in rehire or you need to pay it back, remember that. Though I think layoffs put a blacklist on us for rehire for tech

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Post ID: @bm+1m48zhrtw

Also signing severance docs limits your legal recourse. Aka here’s a bunch of hush money to leave quietly. The longer you’ve been there, the more you know, the more you’re paid to keep quiet. But of course, if you’ve been there a long time, a generous severance should be guaranteed.

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Post ID: @aq+1m48zhrtw

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