Over 90 Per Cent of Nike Layoffs Were Leadership Roles
In a report Nike had to file with the State of Oregon, the job titles of the employees affected by the layoffs were detailed. The breakdown (as reported by the ) shows that 92 per cent of the jobs listed were leadership roles, including 174 directors and 110 senior directors. While this is positive in some lights as it means the cut wasn't a cop-out at entry and mid-level roles, it also means the Swoosh have lost a lot of tenured expertise. Interestingly, 22 positions were cut from the innovation team, which some might question amid the criticism at Nike's reliance on old technology and retros. This news comes after the Oregon brand reported their 2023 financial results, which then led to their stocks crashing to a four-year low...
Following the news in February, it's been announced that Nike are set to layoff a further 740 employees at their One Bowerman Drive, Beaverton headquarters. Team Swoosh informed Oregon officials late last week, stating, 'As a result of a second phase of impacts, which will take effect by June 28, 2024, approximately 740 employees at World Headquarters will have been impacted'. Lower than normal online sales have been attributed to the permanent reduction in workforce. Nike are still deciding on which job titles will be affected, with the layoffs beginning on June 28. Employees at the Beaverton HQ, won't be the only ones affected, with rumours swirling that further layoffs will come into effect for Team Swoosh staff around the globe.
have announced yet another company-wide layoff. According to an internal e-mail obtained by Complex Sneakers, CEO John Donahoe broke the news that approximately two per cent of their staff will be affected.
‘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 is critical to win,’ Donahoe writes in the e-mail. ‘To compete, we must edit, shift and divest less critical work to create greater focus and capacity for what matters most.’
This sort of occurrence isn’t a first for Nike. During Phil Knight’s tenure as Nike’s CEO, he had to let go of 1500 people within the span of 10 years. For example, in February 1984, the Swoosh laid off 271 employees who worked at a New England factory and another 26 at Exeter, with the day becoming known as the St. Valentine’s Day Massacre.
That being said, Donahoe's decision to cut a certain number of staff doesn’t mean it will negatively affect the success of Nike given that the brand have gone through a similar transition before. The news was also expected, as company had previously stated layoffs would likely form part of the strategy to save $2 billion over the next few years. It also came after Nike's earnings for the fiscal year was projected to only rise by one per cent.
Elsewhere in Donahoe’s email, he states that Nike are putting their efforts into innovation and investing in their 'most significant fields of play and growth opportunities', such as running, women's offerings, and Jordan Brand. ‘This is a painful reality and not one that I take lightly,' Donahoe adds. ‘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.'
The change is expected to happen this Friday, and affected employees will be given financial, healthcare, and outplacement support services packages.