Lessons from Nike’s Layoffs And Employee Change Comms
When you think of mainstay American brands, Nike is probably close to the top of the list. Long known as an innovator in the world of sports apparel and equipment, there’s a certain air of gravitas that comes with owning an item branded with the Nike logo. But all might not be well in Nikeland, with recent layoffs, a pushback against leadership, and a rethink on internal culture prompting the iconic brand to make changes.
According to the Wall Street Journal, after Nike laid off 1,600 employees earlier this year, CEO John Donahoe said in a meeting with over 20,000 employees that he held himself accountable for the company’s recent struggles amid a pivot away from brick-and-mortar sales amid a perceived e-commerce boom that didn’t fully materialize.
Spoiler: It didn’t go over well.
From CommPRO:
The article presents a compelling case study on Nike's recent challenges, illustrating how internal dynamics can significantly impact brand perception externally. It discusses the backlash from employees during a company town hall, highlighting a deeper discontent within the workforce, primarily due to strategic missteps and a perceived lack of accountability from the leadership, particularly in the context of layoffs and a failed pivot to e-commerce. The narrative captures a moment of organizational vulnerability where internal communication and leadership alignment are critical.
For communicators, this is a crucial read as it underscores the importance of maintaining transparency, facilitating open dialogue, and ensuring alignment during times of change. It emphasizes that communicators must work closely with leadership to manage the narrative effectively, preserving the brand's integrity and employee morale. The article also touches on the strategic use of data in communication, advocating for a measured and persona-tailored approach to internal communications to navigate through turbulent times. This real-world example serves as a stark reminder of the critical role communicators play in bridging internal dynamics with external perceptions, driving home the point that effective communication strategies are foundational to maintaining a healthy corporate culture and brand reputation.
