© Copyright – 2023 – Athletics Illustrated
According to The Oregonian, “hundreds of jobs are likely on the chopping block.”
As it turns out, in 2020, Nike Inc. predicted that it would incur between $200 million and $250 million in severance costs. This would come to be when it would bear the expense of eliminating 700 positions. The global leader in sports apparel is apparently about to do just that and in the most predictable way.
To “save” money
Nike Inc. expects to take on pre-tax restructuring charges of approximately $450 million that will largely be on the the third quarter books for fiscal year 2024. The dollars will be associated with “employee severance costs.”
Who would think that Nike Inc., would need to be in a position to save money by restructuring?
Nike: “we need to save $2bn over the next 3 years”— Ivan (@istrakhov) December 23, 2023
Also Nike: “we’re re-buying $18bn of shares over 4 years”https://t.co/3ZbfZsBAZG
The message from the Beaverton, Oregon company was typical rhetoric from the suits in the boardroom who just pored over a P & L statement, “We see an outstanding opportunity to drive long-term profitable growth,” wrote CEO John Donahoe in the release.
“[We] are embracing a company-wide journey to invest in our areas of greatest potential, increase the pace of our innovation, and accelerate our agility and responsiveness.”
Apprently Nike Inc. has been very quietly letting staff go for the past several weeks.
Nothing creative to see here
As predicted, according to Nike Inc. areas of savings include the following:
- Streamlining the organization
- Simplifying product assortment
- Increasing automation and use of technology
- Leveraging the company’s scale to drive greater efficiency
It appears the former innovative company is just a colourless giant corporation. It was built on creative efforts by finding funding and partnering with a Japanese company, making waffle shoes with a waffle iron in a garage and selling shoes from the trunk of a car. Now has turned to typical corporate boardroom threadbare speak and exhausted clichéd diatribe.
For the hundreds of employees being let go, hopefully, Nike Inc. plans to specialize in a new direction includes a rehiring phase.