Nike navigated significant organizational shifts in 2024, including CEO John Donahoe's departure and Elliott Hill's appointment as successor. These leadership changes came alongside substantial workforce reductions, with Nike cutting roughly 2% of its global workforce – over 1,600 employees. Most notably, about 40% of top positions were eliminated, including vice presidents, senior directors, and directors.

As Nike moves through what former CEO John Donahoe termed a "transition year", speculation about potential 2025 restructuring continues. While Nike hasn't made official announcements about 2025 layoffs, industry watchers suggest the company may further streamline operations in response to market pressures and evolving consumer preferences. For the most current information, employees should stay tuned to official company communications.

By sharing your severance details, you can access our growing database of severance comparisons to help evaluate your package.

Nike's 2024 Changes and What They Mean for 2025

The extensive leadership reshuffling and workforce adjustments in 2024 point to broader strategic shifts within Nike. While specific plans for 2025 remain unannounced, understanding recent organizational changes provides valuable context for what might come next.

Historical Nike Severance Package Analysis

Understanding Nike's Severance Structure

Nike's severance packages vary based on employee band level and tenure. Here's a detailed breakdown of how Nike structures these benefits:

Band Level and Tenure-Based Severance Matrix

Band E and Above Recipients:

Band L & U Recipients:

Band V & A Recipients:

Supplementary Benefits

Nike's severance packages typically include several additional components:

• Health Coverage: Nike generally subsidizes COBRA costs for approximately six months post-departure.
• PTO Payout: Departing employees receive compensation for unused PTO.
• PSP Bonus Eligibility: Employees on payroll during May (Nike's fiscal year-end) may qualify for Performance Sharing Plan bonuses paid in August.
• Equity Considerations: Vested stock options usually require exercise within 90 days post-departure, barring special retirement eligibility. While unvested options and RSUs typically lapse, larger layoffs sometimes trigger accelerated vesting for awards scheduled within the year.

Package Ranges

Severance amounts vary significantly based on band and tenure:

• Minimum: Band V employees with 1 year receive 4 weeks of pay
• Maximum: Band E employees with 20+ years receive 48 weeks of pay

Variation Notes

Individual circumstances can lead to package variations. Some employees report receiving non-standard packages, potentially due to negotiations or specific employment terms.

How Nike Compares to Industry Peers

Adidas's Approach

Adidas recently announced plans to reduce their Herzogenaurach headquarters workforce by 10%. While U.S. severance details remain limited, discussions indicate concerns about package adequacy, particularly for long-term employees. Unconfirmed reports suggest six-month packages for decade-plus tenures.

Under Armour's Structure

Under Armour's severance information remains sparse. A 2017 employee report indicated eight weeks' pay for four years of service, suggesting a two-week-per-year rate. However, other accounts reference one week per year, indicating possible variations based on circumstances or policy changes.

Reebok's Position

Specific Reebok severance information remains limited. While layoffs have been documented, detailed package information isn't publicly available, making direct comparisons challenging.

Looking Ahead: Nike's 2025 Severance Expectations

While exact 2025 terms await announcement, Nike's historical approach suggests continued structured packages based on band level and tenure. The traditional framework provides a reliable starting point for understanding potential offerings.

Core Financial Support

Nike's established tiered system based on band level and tenure will likely persist, following the detailed matrix outlined above.

Healthcare Support

Expect continued health benefit extensions, typically including:

• COBRA Coverage: Nike traditionally subsidizes premiums for a set post-departure period.

Additional Components

Standard package elements should include:

• PTO payout for unused time
• PSP bonus eligibility (timing dependent)
• Stock option and RSU considerations, including potential accelerated vesting

2025 Outlook

While specific terms may adjust, Nike will likely maintain its structured approach while staying competitive within the industry. Keep informed through official Nike communications and HR channels for the most current information.

Taking Action

While we await Nike's formal 2025 announcements, you can prepare by submitting past severance offers to access our comprehensive severance comparison database. Nike consistently ranks among industry leaders in severance packages, and 2025 likely continues this pattern. If you receive a package, share your offer details to help others maximize their transitions. Remember, data sharing strengthens everyone's negotiating position - the more we know, the better equipped we all are to ensure fair treatment.

Building this knowledge base together helps everyone navigate transitions more effectively. While this overview provides general guidance, consider consulting an employment attorney for situation-specific advice. Your contribution to our database helps others in similar situations make informed decisions.

We're committed to supporting you through this transition. Remember that sharing your experience helps build a stronger community of support for everyone facing similar challenges.