JULY 27, 2024 — BLOODBATH: 4300 LAYOFFS, NOT 1,600 AS ORIGINALLY ANNOUNCED
Annual reports filed with the SEC now indicate that Nike has 4,300 fewer workers than it did last year, which is far more than the roughly 1,600 layoffs the company announced in February 2024. The company originally announced a 2% cut to its staff, but the filings show The Swoosh employs a 5% smaller workforce than it did last year.
APRIL 21, 2024 — 740 HQ EMPLOYEES
The company announced its second phase plans to lay off 740 employees at its headquarters in Beaverton, Oregon by June 28, 2024.
Repeating a previous company statement, Nike's always at our best when we're on the offense. The actions that we're taking put us in the position to right-size our organization to get after our biggest growth opportunities, as interest in sport, health, and wellness has never been stronger. While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates."
Included in the layoffs were 732 senior positions, including 32 vice presidents, 112 senior directors, and 174 directors.
FEBRUARY 16, 2024 — 1,600 TARGETED
According to Nike CEO John Donahoe, the company plans to reduce its workforce by about 2%, or more than 1,600 people, in a bid to cut costs.
Donahoe noted, "This is a painful reality and not one that I take lightly. We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable. That said, I have never been more confident in our leadership and team to drive the clarity and teamwork required to win."
“While interest in sport, health, wellness, and comfort has never been stronger, we are in a highly competitive industry where speed and end-to-end execution are critical to win. To compete, we must edit, shift, and divest less critical work to create greater focus and capacity for what matters most.”
“Nike’s always at our best when we’re on the offense. The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities, as interest in sport, health, and wellness has never been stronger. While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
DECEMBER 30, 2023 — 700 TARGETED
Nike has confirmed that it will have as much as $450 million in restructuring charges in the quarter ending February 28, 2024. Nike expects to incur between $200 and $250 million in severance costs when it eliminates 700 jobs.
DECEMBER 23, 2023 — 2024 WILL BE A TOUGH YEAR FOR EMPLOYEES
The company is continuing its cost-cutting initiative and plans to save up to $2 billion over the next three years using layoffs automation.
According to Chief Financial Officer Matt Friend, "We are seeing indications of more cautious consumer behavior around the world. We know in an environment like this, when the consumer is under pressure and the promotional activity is higher, it's newness and it's innovation which causes the consumer to act."
Of course, Nike did not mention their foray into far-left politics which has angered many as transgender men shut out women at women’s sporting events, impacting both medals and scholarships.
MARCH 19, 2021 — ONGOING RESTRUCTURING WITH LAYOFFS
Nike continues their restructuring, downsizing, and cost-cutting activities by announcing an unspecified number of layoffs.
A company spokesperson noted, “This is a continuation of the work we started this past summer to simplify our organization. We are building a flatter, nimbler company and more quickly transforming Nike to define the marketplace of the future.
We are focused on shifting resources and creating the capacity to reinvest in our highest potential growth areas. This process and related timeframe will vary in certain markets based on local labor laws.”
NOVEMBER 4, 2020 — NIKE UPS LAYOFFS BY 200 EMPLOYEES AT BEAVERTON HEADQUARTERS
In a notice to the State of Oregon, Nike announced, “As of January 8, 2021, approximately 700 employees will have been impacted by this permanent reduction of workforce at Nike's World Headquarters and surrounding neighborhoods.”
This is 200 layoffs more than their previous announcement on July 23, 2020, when it announced 500 layoffs including “members of the Corporate Leadership Team, some corresponding Executive Assistants and the permanent closure of NIKE's childcare centers.”
JULY 24, 2020 — Original post…
Beaverton, Oregon-based Nike, the iconic running shoes, athletic apparel and equipment company, has announced a restructuring program known as Consumer Direct Acceleration or CDA.
"The CDA, announced in June 2020, is a new digitally empowered phase of NIKE’s strategy to unlock long-term growth and profitability. The CDA will create a more premium, consistent and seamless consumer experience across NIKE’s owned and strategic partner ecosystem, align around a new simpler consumer construct and also unify investments in an end-to-end technology foundation to accelerate our digital transformation."
The program will lead to a number of management changes and a reduction in force that will impact an unknown number of employees company-wide.
"The leadership changes, combined with a strategic alignment of NIKE’s operating model against the CDA, will create even greater focus and agility that will be enabled by a nimbler, flatter organization in service of consumers. To drive this focus, NIKE will streamline its organization, including its Corporate Leadership Team (CLT)."
In a statement by Nike's President and CEO, John Donahoe, “We are announcing changes today to transform NIKE faster, accelerate against our biggest growth opportunities and extend our leadership position. Now is the right time to build on NIKE’s strengths and elevate a group of experienced, talented leaders who can help drive the next phase of our growth.”
"A shift to a new, simpler consumer construct of Men’s, Women’s and Kids will allow NIKE to create product with deeper insights and drive even greater specialization through performance sport and sport lifestyle."
The extent to which the COVID-19 pandemic, the company's finances, and Nike's support of the controversial Colin Kaepernick and social justice causes that have alienated customers, ubknown. Kaepernick headed the "take a knee during the playing of the National Anthem" campaign that appears disrespectful to many patriotic Americans.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
