Any worried about this reorg taking place? I’m worried it could mean layoffs, apparently multiple directors were pulled into HR offices at EOD today.
6 replies (most recent on top)
@ad the death spiral.
@OP No. Someone posts an imminent layoffs every other week.
@aa Labor is the second highest expense in most businesses behind COGS. When sales tank, even a Business 101 student knows you have to cut labor costs. It’s just common sense. With far lower sales, you need fewer people. It’s a business, not a charity.
@ab At Nike, VPs typically make the termination decision, while Directors deliver the message to Senior Managers and employees below that level.
@Op Why only Directors in HR, Why not VPs????
@OP Ah yes, the “new CFO effect”: eliminate headcount before Q2 officially begins on September 1, call it financial discipline, and give shareholders a fresh round of “good news”, because apparently fewer employees automatically equals a better company.
I don’t know anything for certain, but I wouldn’t be surprised if layoffs begin tomorrow. And realistically, they may continue until the stock shows signs of recovery—or until leadership runs out of people below them to blame.
Nothing says “long-term turnaround strategy” like repeatedly cutting the workforce to manufacture short-term confidence while leaving the decisions that created the problem completely untouched.