Nike over the past few weeks have been quietly laying off employees internationally, as they plan for a large restructuring initiative. In recent weeks, the company has laid off employees across multiple departments which include but not limited to, human resources, recruitment, source and branding, as well as digital products.
Nike has declined to comment on the recent lay-offs, as they are staying behind the broad restructuring initiative. Multiple employees who are still at Nike have came out to speak, with the message being we do not have any information from Nike about these layoffs. Matthew Kish of the Portland OREGONIAN has also reported that Nike has yet to tell the state of a mass layoff, which is required by law if Nike lays off 550 employees during a 90 day period.
The large layoffs come after Nike made a statement about regaining 'lost momentum' from 2023. The companies stock has been roughly flat this year, while the S&P 500 is up roughly 19% this year.
It's always concerning to hear about significant layoffs within a company, especially one as prominent as Nike. It seems like there's more going on behind the scenes, especially with Nike's silence and the lack of communication to employees and state authorities about the layoffs. It makes me wonder what their new corporate strategy is for 2024.
ReplyDeleteThe lack of official comments from Nike and the reported absence of information for employees still at the company add an air of uncertainty to the situation. This also adds an interesting legal dimension to the developments.
ReplyDeleteThe first thing I thought of while reading is what kind of legal issues has the company run themselves into. I also wonder if they had any financial reporting issues specifically dealing with their FCF levels. All in all, this is not a great position to be in.
ReplyDeleteI wonder how much this has to do with AI restructuring within Nike... Very concerning to hear from such a dominant company like Nike that have been dominating for this long
ReplyDeleteJC, super interesting article. At first I was thinking that the layoffs had to do with increasing technological reliance, or increasing robotic technology- hearing that some of the positions that nike included were HR reps and management staff, will for sure keep anyone interested in Nike tuned in to see what this new initiative includes and the direction they are focussing on heading.
ReplyDeleteI am curious if Nike plans to report a mass layoff or if they will stop cutting off employees before they reach this number and if they will explain why they are releasing so many employees. If this continues would employees start to leave before getting fired?
ReplyDeleteIs it possible that Nike is doing this in order to prepare for a potential economic downturn that is coming? Why do you think these specific roles are the ones being laid off?
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