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‘Woke’ Drama Leads Nike To Lay Off 1,600 Employees

Source: Nike HQ

Nike, the well-known multinational corporation recognized for its iconic footwear and apparel, has recently made a public announcement that has left the whole world in a frenzy. 

The organization has stated its intention to let go of about 1600 individuals who currently work for them. They’ve made it known that this is nothing but an effort to cut the expenses of the organization. 

A Painful Reality 

CEO John Doe has tried his best to explain why the organization is taking this drastic step. He went ahead to acknowledge the fact that the company has not been at its best lately. He also mentioned how ready he was to take personal responsibility for whats happening with the company.

Source: X/StockMKTNewz

John acknowledges that this is a really sad situation, but they have no choice but to embrace the need to lay off workers. John believes that this is the company’s sad reality and this was not a decision they made lightly. 

The Plan Is To Save And Reinvest 

The company has also mentioned that its main goal is to save at least $2 billion in the next three years. And this can only be obtained by cutting down their costs and sadly having to let go of some of their valued employees.

Source: X/PavicDarko

The company intends to reinvest most of these savings into the company’s growth and profitability. The company will also take this opportunity to simplify its product portfolio and also try the active use of technology in its operations. 

This Is A Cost Cutting Strategy 

WFAA, a TV channel, affiliated with ABC News, made a report about this incident. They mentioned that in December, Nike announced that they were going to implement a strategy that would help them cut costs and also help restructure their operations.

Source: X/benzo_ndugu

Their strategy involved cutting down their expenses by a whopping $2 billion. This announcement also hinted to the general public about a possible layoff within the company as a part of their strategy. 

This Response  Came After Their Stock Dropped

Nike’s decision didn’t just pop up out of the blue. They’ve decided to lay off a large number of their employees, which is a pretty big deal. In December Nike witnessed a significant drop of 10%  in their stock value and this prompted them to take action.

Source: Wikimedia/Nike_Factory

The company had to take immediate action to make up for this loss. This led them to the decision to engage in budget cuts which also required them to let go of about 1,600 employees. 

Nike Has A Long Standing Proud History 

CEO John mentioned that the multinational organization is known for its proud history of being resilient. The company has withstood the test of time and has also equipped its employees with the resilience to overcome challenges.

Source: Wikimedia/JD Lasica

John added that most of Nike’s challenging moments have done nothing but bring out the best in them and this wasn’t going to be different. 

Nike Will Overcome Once Again 

CEO John, while talking about the company’s present situation, expressed his confidence in the company’s ability to come together and respond positively to the challenges they’re facing.

Source: X/waves_ctr

John has mentioned that despite the challenges they’re currently facing he has decided to remain optimistic about the company’s ability to overcome these obstacles just as they’ve always done. 

The Company Has Started Laying Off Staff 

The company has already started taking steps to lay off workers in some of its locations. The first round of layoffs took place around the end of May and it started at the company’s headquarters in Oregon.

Source: X/KicksFinder

This is just one of many locations where layoffs have occurred and more are expected to take place in the next couple of months. 

An Attempt To Support Those That Have Been Fired 

While some workers have been laid off, those who still have their jobs have decided to come together to do something helpful for those who have been fired. They’ve created an alumni group with the main aim of providing support. 

Source: X/ComplexSneakers

But there’s something common amongst those who were fired, most of them have decided to also start their own companies, and these alumni groups are coming together to help them on their entrepreneurial journey. 

Standing As A Supporting Community 

When Jana Panafilio, who has been with Nike for 29 years, was asked about the functions of the  Alumni group, she responded that this was their way of supporting their colleagues who were laid off by the company.

Source: X/FOXSportsPR

Panafilio added that the alumni group was created to help those who were fired achieve a sense of stability as they transition into their new job positions. This includes providing support and guidance that would help them navigate the responsibilities of their new roles.  

Our Help Depends On What They Need

Panafilio added that the kind of help that is rendered by the alumni group is a flexible one, this is because these individuals will most likely have different needs, so they are set up in a way that’s ready to accommodate everyone’s needs.

Source: X/justinpowellweb

Because the alumni group was able to understand that these former employees would require different kinds of assistance, they have made available resources to help them. 

Former Nike Employees Are Starting Their Own Company 

Shockingly, a high number of these employees who used to work at Nike have now decided to start their own businesses. And now they are faced with the search for skillful individuals who will join their company.

Source: X/investing_china

While they are looking for talents, they are also actively looking for clients who will work with them. They now have no choice but to actively market their products and also grow their customer base. 

Tiger Woods Also Ended His 27-Year Old Contract 

Unfortunately, this setback has affected the long-standing relationship between Nike and popular golfer Tiger Woods. Now the professional golfer has terminated the 27-year contract between him and Nike.

Source: X/NBCSports

Tiger Woods has decided to move on to greater things and this termination has led him to also launch his clothing line. 

An Attempt To Restrategize 

Nike has clarified that the decision to lay off workers will not affect those who specifically work in the company’s stores and those who work in the distribution centers.

Source: X/brianmmorgan

According to Nike, this is an attempt to restructure the company’s business operations. An attempt to respond positively to all the challenges it’s been facing. 

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Mary Scrantin

Written by Mary Scrantin

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