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[Transgender sales down...] Nike lays off more than 1,500 people as CEO says 'I ultimately hold myself and my leadership team accountable'
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Leroy N. Soetoro
Feb 19, 2024, 6:32:18 PMFeb 19
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https://fortune.com/2024/02/16/nike-lays-off-more-than-1500-people-ceo-
john-donahoe/
Nike’s CEO John Donahoe blamed himself on Friday while saying the company
was laying off more than 1,500 people—cuts that Donahoe said would
“reignite our growth.”
In a widely reported memo announcing the 2% cut to Nike’s workforce,
Donahoe added that he didn’t take the decision to lay off thousands of
employees lightly and put some of the blame for Nike’s recent
underperformance on himself and the company’s leadership. Portland, Ore.-
based publication Willamette Week was first to report Donahoe’s comments
in the memo.
“We are not currently performing at our best, and I ultimately hold myself
and my leadership team accountable,” he added.
It’s unclear if any Nike executives would face repercussions for the
company’s lackluster performance. The company did not immediately respond
to Fortune’s request for comment.
In a statement provided to Footwear News, a spokesperson said “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
have never been stronger.
The shoe and apparel company’s decision to cut back on its employees
echoes similar moves made across industries in the past year. In January,
Meta CEO Mark Zuckerberg said that the company’s “year of efficiency”
changes instituted in 2023 would become permanent, after he saw that Meta
had been able to “execute better and faster,” despite mass layoffs.
Other CEOs have also been quick to scale back their own workforces, with
one tech analyst adding that the trend has “become contagious.”
In January, Google CEO Sundar Pichai said that the company would follow up
12,000 layoffs in 2023 with more cuts this year. He said in an internal
memo obtained by the Verge that the cuts were meant to “…drive velocity in
some areas.”
Discord CEO Jason Citron said in January that the company was laying off
170 people to “sharpen our focus,” and “bring more agility to our
organization,” the Verge reported based on an internal memo.
In just the first two months of the year several other major companies
outside tech, such as Morgan Stanley, Paramount, and Citi, have announced
layoffs affecting thousands of workers.
In December, Nike said that it planned to cut costs by $2 billion over the
next three years as part of a broad restructuring plan caused in part by
weaker consumer demand. The Oregonian reported that prior to Friday’s
announcement the company had been laying workers off in phases across
several divisions including
In recent months clothing and shoe retailers including Nike along with
competitors Puma, and Adidas have cut future guidance and have warned that
consumers are pulling back on their spending.
Still, the labor market overall has remained strong and the unemployment
rate has remained steady despite analyst predictions of an impending
recession. Employers added 353,000 jobs in January, much higher than the
185,000 jobs some analysts expected to be added. The number of employees
let go so far this year is also far off from the more than 100,000 laid
off in January and February alone last year, according to data from
Layoffs.fyi.
--
We live in a time where intelligent people are being silenced so that
stupid people won't be offended.
Durham Report: The FBI has an integrity problem. It has none.
No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Officially made Nancy Pelosi a two-time impeachment loser.
Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.
President Trump boosted the economy, reduced illegal invasions, appointed
dozens of judges and three SCOTUS justices.
john-donahoe/
Nike’s CEO John Donahoe blamed himself on Friday while saying the company
was laying off more than 1,500 people—cuts that Donahoe said would
“reignite our growth.”
In a widely reported memo announcing the 2% cut to Nike’s workforce,
Donahoe added that he didn’t take the decision to lay off thousands of
employees lightly and put some of the blame for Nike’s recent
underperformance on himself and the company’s leadership. Portland, Ore.-
based publication Willamette Week was first to report Donahoe’s comments
in the memo.
“We are not currently performing at our best, and I ultimately hold myself
and my leadership team accountable,” he added.
It’s unclear if any Nike executives would face repercussions for the
company’s lackluster performance. The company did not immediately respond
to Fortune’s request for comment.
In a statement provided to Footwear News, a spokesperson said “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
have never been stronger.
The shoe and apparel company’s decision to cut back on its employees
echoes similar moves made across industries in the past year. In January,
Meta CEO Mark Zuckerberg said that the company’s “year of efficiency”
changes instituted in 2023 would become permanent, after he saw that Meta
had been able to “execute better and faster,” despite mass layoffs.
Other CEOs have also been quick to scale back their own workforces, with
one tech analyst adding that the trend has “become contagious.”
In January, Google CEO Sundar Pichai said that the company would follow up
12,000 layoffs in 2023 with more cuts this year. He said in an internal
memo obtained by the Verge that the cuts were meant to “…drive velocity in
some areas.”
Discord CEO Jason Citron said in January that the company was laying off
170 people to “sharpen our focus,” and “bring more agility to our
organization,” the Verge reported based on an internal memo.
In just the first two months of the year several other major companies
outside tech, such as Morgan Stanley, Paramount, and Citi, have announced
layoffs affecting thousands of workers.
In December, Nike said that it planned to cut costs by $2 billion over the
next three years as part of a broad restructuring plan caused in part by
weaker consumer demand. The Oregonian reported that prior to Friday’s
announcement the company had been laying workers off in phases across
several divisions including
In recent months clothing and shoe retailers including Nike along with
competitors Puma, and Adidas have cut future guidance and have warned that
consumers are pulling back on their spending.
Still, the labor market overall has remained strong and the unemployment
rate has remained steady despite analyst predictions of an impending
recession. Employers added 353,000 jobs in January, much higher than the
185,000 jobs some analysts expected to be added. The number of employees
let go so far this year is also far off from the more than 100,000 laid
off in January and February alone last year, according to data from
Layoffs.fyi.
--
We live in a time where intelligent people are being silenced so that
stupid people won't be offended.
Durham Report: The FBI has an integrity problem. It has none.
No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Officially made Nancy Pelosi a two-time impeachment loser.
Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.
President Trump boosted the economy, reduced illegal invasions, appointed
dozens of judges and three SCOTUS justices.
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