Nike....laying off workers

[SpaceMan5]

Nike announced plans to lay off around 1,600 employees, or about 2% of its global workforce, as part of a $2 billion cost-cutting strategy.
CEO John Donahoe said performance has not been the best and took responsibility.
Donahoe said, “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,” he continued.

Easy for him to say that as he keeps his million dollar salary and benefits while others lose their jobs no fault of their own. Is it the "wokeness" or just bad management or both??

 

[NYCgrrl]

Maybe it’s neither?

 

[Judique]

Nike announced plans to lay off around 1,600 employees, or about 2% of its global workforce, as part of a $2 billion cost-cutting strategy.
CEO John Donahoe said performance has not been the best and took responsibility.
Donahoe said, “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,” he continued.

Easy for him to say that as he keeps his million dollar salary and benefits while others lose their jobs no fault of their own. Is it the "wokeness" or just bad management or both??

I would say trends are changing. There are many different companies making these products and people don't always stick with a brand.

 

[Beezle2]

Nike announced plans to lay off around 1,600 employees, or about 2% of its global workforce, as part of a $2 billion cost-cutting strategy.
CEO John Donahoe said performance has not been the best and took responsibility.
Donahoe said, “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,” he continued.

Easy for him to say that as he keeps his million dollar salary and benefits while others lose their jobs no fault of their own. Is it the "wokeness" or just bad management or both??

Well in what way would "wokeness" apply? Sounds like more of the same old misery for thee and moolah for me business as usual.

 

[Beezle2]

I haven't bought a pair of Nike shoes in over 15 years I bet. We bought them when the kids were at home in the 2000s. I think their brand might just be fading naturally.

 

[mikehn]

It ultimately falls on management. When your product doesnt sell, you do something about it, innovate, whatever. They kept on relying on celebs to sell their old tired products. Until the celebs were tired too.

 

[princesscinderella]

Nikes have never been comfortable on my feet. Make a comfortable shoe and it may turn around. A lot of Nike styles have a flat foot bed and not enough arch support.

 

[cvjw]

We stopped buying Nikes a while back. This doesn’t surprise me that they are having layoffs.

 

[TippyThomas]

They're probably anticipating huge loss of sale due to that other shoe line recently introduced.

 

[john7994]

Yes, let’s revel in the misery of laid off workers to prove / disprove the merits of political theater … but yeah … haven’t worn Nike long before there was another made up reason not too.

 

[tvguy]

I can't speak to Nike, but I worked for a corporation that responded to the 2008 recession by instituting a hiring freeze, layoffs, a 5% across the board pay cut, and furloughs.
I had to take one day off every two weeks without pay. If an employee was off, they could not be replaced because paying overtime to cover for them makes no sense. But the boss could pay overtime to cover positions that were vacant due to layoffs or the hiring freeze. So I worked 4 days one week, 6 days the next for 6 months and made more money that year than any other I worked. The company had less revenue because fewer employees meant fewer paying projects from clients. A couple of years later the CEO admitted, the company would have been money ahead to have done nothing.

 

[HopperFan]

Maybe it’s neither?

THIS.

In the end the top tier makes all the decisions and the managers work with what has been laid in front of them. This is the result of corporate greed at the top just like most businesses now, from grocery stores to athletic shoes. It wasn't long ago we were paying around $60-80 for a decent pair of Nike. Now we'd have to shell out $140-200 a pair. Are they any better, no? What does that mean? We no longer wear Nike. But those at the top want their big paychecks and bonuses so they blame others. Look at Walmart - prices are way above what they used to be, employees are rare and spotty in the stores, we are checking ourselves out ... look at their recent earnings report on Q4. They are banking. All their higher prices and lower services are to put money in the Walton family and top executives pockets.

Add COVID led many companies down the corporate greed path and until WE STOP paying the prices they are gouging us with, they will continue. Some items, like gas, we have no choice. Other items like Nike shoes and even pasta (I stopped buying when they doubled the price) are optional.

 

[Praying Colonel]

Hokas are the hot shoe right now.

https://www.cnn.com/2023/01/31/business/hoka-sneakers-running/index.html

Perhaps it and other brands are eating into Nike's market share.

 

[Smugpugmug]

Hokas are the hot shoe right now.

https://www.cnn.com/2023/01/31/business/hoka-sneakers-running/index.html

Perhaps it and other brands are eating into Nike's market share.

I'm surprised Hokas don't have a collab with Disney seeing as SO many people are wearing them to the parks. Universal too, actually.

They're my shoe of choice as I need a wider fit and they're one of the only ones that feel comfortable to me. I've never owned Nikes as they feel too narrow for my feet.

 

[EACarlson]

Hokas are the hot shoe right now.

https://www.cnn.com/2023/01/31/business/hoka-sneakers-running/index.html

Perhaps it and other brands are eating into Nike's market share.

I think this is a big part of it. There are more shoe brands more accessible that make a better product than Nike. I have a pair of Hokas and a pair of Nike running shoes, I know I'm going with the Hokas if I'm doing any distance. I don't think decisions like Kaepernick and Rapinoe helped them all that much, but I feel that's secondary to the fact it's an inferior product in many cases.

 

[hertamaniac]

Maybe, like in my case, a custom fit insole can overcome the brand name feel/fit. My inserts were ordered and prescribed by my podiatrist and are holding up quite well.

 

[HopperFan]

I'm surprised Hokas don't have a collab with Disney seeing as SO many people are wearing them to the parks. Universal too, actually.

They're my shoe of choice as I need a wider fit and they're one of the only ones that feel comfortable to me. I've never owned Nikes as they feel too narrow for my feet.

Disney already has a partnership with New Balance for Run Disney. It might be they can't contract with anyone else given Run Disney is associated with the parks.

 

[tony67]

I don't think I have ever owned a pair of Nike.
I ran track and cross country in high school and college - never in Nike.
They were always more about marketing than anything else.
$5 shoes that sell for 10 to 20 times that. (yeah most of them are similar I know)

There are many better options out there.
As for Hokas - I did do some research for the wife and we even tried a pair, but was not impressed.
We returned them.
We ended up going with orthofeet and have been very happy with them.

I'm sure lots of folks will be keeping their current sneakers longer with the current state on the economy.
Most companies are also trying to cut costs, so for them to lay some folks off is not all that surprising to me.

It's usually short sited, IMO, but that seems to be the general way things are right now IMO.

 

[Smugpugmug]

Disney already has a partnership with New Balance for Run Disney. It might be they can't contract with anyone else given Run Disney is associated with the parks.

Yeah, I know it wouldn't happen. I was half joking given how many people wear Hokas to Disney. I've even see people wearing the same exact shoes as me.

 

[_19disnA]

And the MILLIONS of dollars Nike pays various athletes to wear their shoes has to come from somewhere. That translates to a higher cost for the shoes consumers buy. There are LOTS of choices of shoes, so it doesn't surprise me their market share is declining.