Word down at the watering hole is that CFOs fixin' mandate to take a mighty sharp kn--e to everything, and he ain't fixing to waste any time doing it, neither.
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@OP Nothing says “turnaround strategy” quite like hiring a career restructuring CFO and dressing it up as a “Sport Offense.”
“Operational rigor” means employees should update their résumés.
“Margin discipline” means leadership made expensive mistakes and everyone below them gets to pay for those mistakes.
“Capital reallocation” means your team’s work was essential right up until a spreadsheet needed another green cell.
“Supply-chain optimization” means tariffs will be blamed for decisions already waiting to happen.
And “enterprise transformation expertise” means he has spent three decades learning how to make fewer employees produce more while executives congratulate one another for their courage.
But relax. This is all about investing in athletes, innovation, and Nike’s future. Your continued participation in that future is apparently the only discretionary expense.
Fixing what’s broken, holding people & teams accountable for mistakes —- all good stuff if actual. If just cost cutting window dressing then won’t accomplish much, and put more pressure on the dwindling # of capable people that can get sh-t done. Would love it if someone had the guts to take on the process & systems issues that make Nike hard to do business with. Every step of the way is hangers-on leeches su-king the life out of this company, adding zero value, and just putting up roadblocks to being good, efficient, or timely. If we bring a cool product to market - all the steps from getting Customers the data they need, and all the data/transactions to drive the supply chain on both ends should just ‘work’, not be the cluster fubar of manual processes, data getting lost & dropped, etc , that it is. These are basics we shouldn’t have to think about. These are basics that packaged systems do right out of the box - if set them up right, don’t break them to work the Nike-way, and aren’t naive enough to custom build systems handling the major OTC processes. Basics gotta work!
Can we cut the layered cake of tech leadership… all redundant VPs and Sr Directors
I love the cutting. Keep cutting until we start growing again.
10% cuts coming in September.
The ol' minimize expense playbook while doing nothing to increase revenue. Wouldn't it be fascinating if they focused in revenue for a change and worked towards increasing that?
If we assume the current spend supports the current revenue, then wouldn't cutting expense hurt revenue at some point?
Very short sighted.
Bean counters gonna bean count.
@Op more details if you have them