- captured the aptitude of our ELT. All great when reading from a script but sounded lost and unconfident when answering the “hard” questions. The stocked dropped a dollar with every JD mention of “just last week, Matt and I…”
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You can't incur the cost of severance without notifying an employee as incurring the cost requires actually paying out the amount. Regulatory bodies would be very concerned if we were "incurring" the cost before it was realized.
You can incur the cost if you’ve identified the employee that will be let go. You don’t actually have to notify them to incur the cost.
I suspect the EMEA layoffs work significantly differently than the US ones due to their stricter labor laws. Likely the immediate restructuring costs will be lower there since this will be giving notice. The works councils will have already been notified and come to an agreement with leadership by now. The costs will be incurred in the next fiscal year when the notice period has concluded. This also likely means the layoffs outside the US are going to be sizable since the remaining 47mm will be US layoffs. Assuming they are all lower band IC's the cost per employee is probably lower than 100k and would account for the difference in numbers. There has been just under 500 employees laid off so far (VP's and SD's get very generous severance plus the cost of the consulting agency fees to "plan" the restructuring) Given the 2% number, we are expecting around 1600 give or take a hundred or so, so 1600 - 500 = 1100 more layoffs. Say 300 in EMEA/APLA/GC leaves us with 800 more in US, which is doable with the remaining costs.
From the transcript:
“I will note that our guidance includes restructuring charges of approximately $450 million in our second half, with $403 million incurred in the third quarter.”
$47M remaining in restructuring costs in Q4, across all GEOs? (not Emea)
At roughly 100k-200k per FTE, that’s 235 to 470 jobs.
Also, exactly how many jobs comprised that $403M number?
Let me know if I’m misinterpreting Matt’s statement.
“We’re starting to see green shoots”
Oh please spare me the buzz terms and empty statements! I am particularly offended by the notion that Nike exists to serve a higher purpose, by improving people’s lives through the power of sport…we don’t run sports clubs for the underprivileged - we make and sell tee shirts and tennis shoes for the benefit of shareholders!
Stock is getting crushed…rightfully so when you look at leadership. While people’s 401k’s get crushed I am sure the golden parachutes are in place to save them.
How is he not fired yet?
Newness and Innovation...That's all I heard on that call.
That was no different than the last all hands. The mindless AI drone reading from the script went off the rails when it had to interact with a human. They aborted the call abruptly to avoid further damage. Sad state of affairs
They also abruptly ended the call... to stop the hemorrhaging ....
We just need more innovation. Can we innovate and get a better ELT and Board
…and to think he gets >$30m a year for this… truly astonishing.