Nike To Lay Off 2 Of Workforce

We’ve talked about quiet firing where companies are learning that sure it was great in 2023 to announce laying people off because it was great for your stock price. It was excellent because investors said oh, you’re laying people off. You’ll have less of those pesky employees clogging up your balance sheet with expenses. So it means you’re going to have more profits. Here’s the problem these big companies also figured out oof.

Now investors are trying to figure out wait a minute, if you’re laying off employees it means probably because you have less business because the economy is slowly grinding to a halt. So that’s actually bad. So now we got quiet firing. But Nike can’t go around and just lay off 2% or 1500 of its employees and make it quiet. All right, again, remember, companies also are bombarded with what we just saw with JPMorgan, a billion dollars in severance fees in 2023 alone.

But hey, don’t worry, Joe Biden says everything’s fine. Just eat some ice cream and all they’re going to do is just change the way they calculate the jobs numbers. All right, so here we go. Out of CNBC, Nike lay off 2% of employees. It says it’s cutting 2% of its current workforce or more than 1500 jobs as part of a broader restructuring, the company said late Thursday. The Beaverton, Oregon based sneaker giant said it wants to better use its capital to invest in its growth areas such as running women’s and the Jordan brand.

This is how we will reignite our growth, CEO John Donahue said in a memo obtained by CNBC. Let me stop and remind you, is that what they’re not telling you is they’re selling less stuff, okay? People are not out there buying expensive air jordans when they’re trying to pay overly inflated electricity costs and things like that. So that’s the one thing we want to take away from this, he says.

This is a painful reality that no one sorry and not one that I take lightly. He added, we are not currently performing at our best and I ultimately hold myself and the leadership team accountable I wonder if he’s deciding to take a pay cut. Probably not. Nike said the layoffs will take place in two phases. The company will start the first round this week. If you’re part of Nike, let me know down below.

I’m curious what you’re seeing there. It says the first round will be this week and finish the second. By the end of the fiscal fourth quarter, which typically concludes at the end of May, cuts in Nike’s Ema EMEA region will be on a different timeline based on local labor laws. The company said it’s not clear which departments will experience the layoffs. The reason why is because they don’t want people just going out and arbitrarily finding jobs now getting ahead of the groove and then Nike having a problem going, oh crap, we didn’t want to lose these people.

We want to get rid of these people. All right. That’s why they always say it’s not clear. But they said they will not affect retail employees at Nike stores or warehouse workers. The company said they want to make sure they don’t lose those people. The cuts come as consumers become more cautious in their spending and the retail industry braces for a demand slowdown for discretionary items such as clothes and shoes, which Nike, it’s Nike’s bread and butter again.

The more people get laid off, the more this problem gets bigger and bigger and we see this self fulfilling prophecy and the snowball running down the hill. Now let’s move to other layoffs that we’re seeing in 2024. And please, if you’re seeing something in your industry or your company is laying off, please let me know down below. And if it’s big, I can start following it and watching it progress.

Even if it’s not big companies start somewhere, right? The easiest way that a company starts to save money is they go on a hiring freeze. They pause and wait. They’re like, hey, something just happened. Our balance sheet. We’re not bringing in the amount of money we used to bring in. So let’s hold off on any new hires. Let’s slow down our growth, expansion rate. And then it moves into, okay, let’s start cutting costs.

Let’s start laying people off. So right now, obviously Nike is heading in the news right now because it’s such a big name. But right now, Stalanis to lay off up to 120 union members at Belvedere plant. Now that’s really interesting because lately we’ve seen companies that are employees that are striking and then the first thing they do is the company agrees to pay more for wages and stuff and then they start laying off the nonunion.

Well you’re seeing Stellanis laying off 120 union members at a Belvedere plant. That was 17 hours ago. It says toast. This was 20 1 hour goes, toast will lay off 10% of its workforce, about 550 employees as growth slows. Now it’s interesting. Nike announced 2% and 1500 employees. Toast laying off 10%. When you see double digit layoffs that is aggressive. There is something happening, right? For them to lay off 10% or 550 employees.

You don’t have to be a massive mega company like Nike to really affect a lot of people. It says here, forest river to lay off 83 workers. Sorry, Ninja forgot to turn off his ringer. Cisco, we’ve talked about this the other day, laying off thousands of employees. It says right here, this is just out of yesterday. Bay Area tech giant Cisco to lay off more than 4000 in a 5% staff cut.

Now we’ve seen techs just explode lately, right? The stocks are doing great. At the same time, why would Cisco, if they’re right in the middle of Silicon Valley, right in the middle of tech land, why would they need to lay off 5% or 4000 people? That’s a bigger story. Those are bigger numbers than Nike. All right. Again, that divergence from what people visualize with the stocks are going up, the economy must be great.

And that’s what the president keeps telling us, right? All the while he’s declining a cognitive test. You can’t make this stuff up. But then you also look at, thank you Neil for letting me know. Neil’s saying that he wasn’t the one calling me. But my point being is that these numbers add up. Now there’s 4000 people that are about to have a difficult time finding other employment because this is across the board and they’re going to have a hard time paying their car payments, their home payments.

And you can see how this is going to get worse into this year. So it says here paramount to lay off 800 staffers as the CEO unveils broad streamlining cost effort. Think about this. Everywhere the economy is slowing down and yet just the views on the entire Internet for people looking for the truth is down significantly. People are in a lull. They don’t know which way to go.

They don’t want to see negative news and they just want to be the fluff out there. They want to be told everything’s going to be okay. And right now they’re not paying attention to their industry. And if their industry is in trouble now this is an interesting one. Out of Business Insider, Gen Z discovers the ultimate anti layoff hack. And that’s government jobs. Because our government is swelling, it’s printing money at a rapid pace and it’s becoming the largest employer.

That’s because it wants to become the option of last resort, the ultimate savior. And that’s a scary place to be, but that’s where a lot of people are running to. But even the government goes through very tight times. I remember the DoD, the largest employer on earth, went through a time of ten years after the great Recession where nobody got a single raise, a single cost of living raise.

Then it also went through deep hiring freezes, long term hiring freezes where it didn’t hire anybody as well. So we need to realize the importance of just because you see one company hiring, look at all the ones that are losing right now. It says here, Cleveland cliffs to shutter West Virginia tin plant and lay off 900 after a tariff ruling. It’s not just the economy. It’s also governmental laws that change and cause these companies to lay people off.

Restaurant based tech company out of Boston is planning for 550 layoffs. Okay, that’s toast. Sorry. Not even thinking about that. I repeated it. Here we go. San Diego unified plans to issue teacher layoff notices as district seeks budget cuts. San Diego San Diego Unified School district think about it. San Diego is one of those markets that are actually still defying a price drop in California and they are still seeing strong price rises even though there are very few homes out there for sale.

But they’re laying off teachers. So those teachers that live in that area, they’re going to need to sell if they cannot go and find a new job in that area or they’re going to have to sell to go move out of the area to become a teacher somewhere else. So my point being is that I believe that you’re going to see this spiral out of control. This is going to be the story going into the presidential election cycle.

What are we going to do to get more jobs in America? Let’s make America working again. Did the algo get pissed off at that we need to make America rich again by making the middle class rich again. Thank you so much for watching. I’ve got the links down below to the side hustle. Course there’s what, eight days left until the price goes up? Thank you so much for watching.

Please let me know down in the comments if you are seeing job cuts. I do see comments of people, subscribers being laid off. My heart goes out to you. But the last three years, we’ve been sounding the alarm, and a lot of you have taken heed and done something about it and diversify. Start a side hustle. Get a second job. Start to get out of debt for times like these, and it’s going to get rough.

But what I want you to do is take advantage of these times, not be a victim. And that’s how we are all going to win. All right? That being said, the economic ninja is out. .

See more of The Economic Ninja on their Public Channel and the MPN The Economic Ninja channel.