Nike has significantly reduced its workforce

According to a document from the US Securities and Exchange Commission, Nike is cutting its global workforce more deeply than previously planned, and the document also revealed that CEO John Donahoe will take a $3 million pay cut. Previously, Nike announced that it would lay off 740 employees at its headquarters in Beaverton, reducing its global workforce by 2% as part of a $2 billion cost cutting strategy.

Firstly, the report states that as of May 31st, the number of employees at Nike's global headquarters decreased by 700 compared to last year, with a global workforce of approximately 79400, a decrease of 5% compared to last year. The report also stated that Donahoe's total compensation for 2024 was $29.1 million, divided into basic salary, stock options and rewards, performance bonuses, and charitable donations, which is 11% lower than his compensation of $32.8 million last year.

Secondly, Nike's executive compensation is directly related to the company's performance, and Nike's recent troubles include the most severe stock price decline in the company's history and the downward adjustment of its 2025 profit forecast. Donahoe's salary this year is relatively low, resulting in a smaller ratio of CEO to employee compensation, which is the ratio of CEO compensation to the median employee compensation. Last year, the ratio was 975:1, based on a median salary of $33646; This year, the ratio is 759:1, with a median salary of $38462.

On the other hand, in addition to layoffs, Nike has also lost several senior employees in the past few months. Nike's annual shareholder meeting is scheduled for September 10th, during which shareholders will vote on issues such as executive compensation and board members for next year. According to MBJ's research, Nike, headquartered in Oregon, is the second largest publicly traded company employer in the Memphis area. The company has approximately 6000 local employees. Nike's main local facility, a 2.8 million square foot North American logistics park, is located at 3100 New Fraser Avenue.

In addition, government documents show that Nike's predicament continues to worsen this year, with the company's workforce more than doubling from the previously announced layoffs. The annual report submitted to the US Securities and Exchange Commission shows that Nike's workforce has decreased by 4300 compared to last year, far exceeding the company's announcement of approximately 1600 layoffs in February. The company initially announced a 2% layoff, but documents show that Nike's workforce has decreased by 5% compared to last year.

In the recent layoffs, 40% were vice presidents, directors, or senior directors, resulting in a total of 700 people being laid off. The layoffs have had an impact on Nike's stock price, which fell by 20% in just one day at the end of June. The company also carried out a sustainable development massacre, cutting one-fifth of the job positions in the department. The company has signed a $28 million footwear contract with Caitlin Clark, the most dazzling rising star in the American sports industry, and has sponsored a large number of Olympic athletes. But this is not enough to appease investors. After the company released a poor quarterly earnings report at the end of June, Nike's stock price fell by more than 11%.

Overall, apart from layoffs, the stock performance of this sportswear company has also been poor. The company's stock price fell from $2.38 to $73.05, hitting a 52 week low. The layoffs will be implemented at the company's global headquarters in Oregon. The sportswear company has been implementing the layoff plan since it was announced in February. At the time, the company stated that about 2% of its employees would be affected by Nike's layoffs, which equates to approximately 1600 job positions.