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Corporate America is experimenting with a particularly unsettling form of workforce reduction. Companies are announcing that job cuts are coming, while leaving employees waiting weeks or even months to learn whether their positions will disappear.

Nike became the latest company to use that approach last week. The sportswear maker said decisions about affected roles would begin in 2027 and continue beyond that point, without specifying how many jobs or locations would be involved.

Meta and GitLab made similar announcements earlier this year, disclosing planned reductions before identifying the workers who would be dismissed. Companies typically tell affected employees and the broader workforce about layoffs on the same day.

An extended warning can provide workers with valuable time to search for another position. It can also produce widespread anxiety and potentially encourage employees to resign voluntarily, which workplace observers said could save companies severance costs.

Nike CEO Elliott Hill said the company would reduce its head count as part of a change to its operating model. He acknowledged that Nike did not yet know the number of roles or locations that would be affected.

“I want to acknowledge that news like this creates uncertainty,” Hill wrote. “Throughout this process, we will communicate directly, act with transparency and treat people with respect.”

The announcement arrived alongside Nike’s fiscal first quarter results. Profit declined 2%, revenue dropped 4%, and the company said it expects revenue to fall by a percentage in the high single digits during its current fiscal year.

Nike spokeswoman Mary Remuzzi said the company “remains committed to being transparent with our employees and communicating updates as we have them.” She also said: “Some actions will occur over time and, in many locations, applicable local requirements and consultation processes will inform timing and execution.”

Nike is attempting a turnaround while its shares are down about 46% year to date. The company previously announced in April that it was eliminating about 1,400 roles, but affected workers were told they would hear from their leaders and human resources partners beginning that same day.

Meta created a similar period of uncertainty in April when it said it would dismiss 10% of its workforce the following month. Internal forums quickly filled with anxious questions and dark humor, with one commentator describing the situation as “28 days of hell.”

The company had used staggered layoff announcements before. In mid March 2023, during its “ Year of Efficiency, ” Meta said some workers would learn the next day whether they were affected, while reorganizations and layoffs would follow in late April for technology groups and late May for business groups.

These broad warnings differ from the advance written notices that federal and some state laws require for large layoffs. Nike, Meta, and GitLab notified their wider workforces of coming reductions before identifying which roles would be eliminated.

Employment attorney Kevin Zwetsch said companies providing more notice than the law may require could be seeking voluntary resignations. That approach might reduce severance payments and involuntary dismissals, but he warned that “you may lose good people,” including “people that you would not have picked as part of the restructuring.”

Career coaches and human resources professionals said workers often respond to looming layoffs by trying harder to prove their value. Yet extra effort generally does not change the result, while disengagement could give an employer a reason to place someone on the layoff list.

“Working harder in the final weeks won't move the needle,” Laszlo Bock, formerly Google’s head of human resources, previously told Business Insider. Bock, who now advises startups, said workers are often better served by networking and preparing their next move.

Sarah Rodehorst, cofounder and CEO of Onwards HR, said advance notice can help employees search for other openings inside their company. Her firm helps businesses manage severance and employee departures.

Rodehorst said warnings must be specific enough to help workers evaluate their exposure. Identifying the departments, roles, or locations most likely to face cuts can provide useful guidance, while a vague announcement can spread “a lot of anxiety” throughout an organization.

Laura Labovich, who runs the outplacement firm Career Strategy Group, said one or two months of notice can give employees a useful head start while they remain employed. Companies can also publicly explain that cuts reflect financial challenges rather than worker ability and permit employees to attend interviews during business hours.

The additional time gives workers an opportunity to collect colleagues’ contact information and nonproprietary records, including performance reviews that could support a job search. But without meaningful detail, an early warning can leave an entire workforce suspended between continued employment and an uncertain exit.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.