A layoff notice from Nike starts five time-sensitive clocks that most employees do not know about. Nike announced sweeping job cuts on October 1, 2026, part of a restructuring plan tied to a steep revenue forecast drop. The number of affected employees has not been disclosed, but cuts span corporate functions across the company. If you're one of them, here's what needs to happen this week, and in what order.
- File for unemployment in Oregon today, claims are not retroactive, and waiting costs you money.
- Do not sign your severance agreement until you've had your full review window: 45 days for a group layoff, 21 days if individual.
- Elect COBRA or enroll in Marketplace coverage within 60 days of losing your Nike health benefits.
- If you hold ISOs, you have 90 days from termination to exercise them at ISO tax rates.
- Decide what to do with your 401(k) before you receive any distribution, to avoid triggering the 60-day rollover clock.
What happened
On October 1, 2026, Nike announced it would cut jobs across corporate functions as part of a sweeping restructuring plan.1 The company cited a steep expected revenue drop as the driver. Nike has not disclosed how many employees are affected or which specific departments are being cut.
What should you do about unemployment first?
Unemployment insurance is a state-run benefit that replaces a portion of your wages while you look for work. In Oregon, where Nike is headquartered, the maximum weekly benefit is $733 as of 2026.6
File the day you lose your job, or as close to it as you can. Oregon does not backdate claims. Every week you delay is a week of benefits you cannot recover. You can file online at unemployment.oregon.gov.
When you file, you'll need your Social Security number, your Nike employment dates, your final pay information, and a form of ID. Oregon uses an identity verification step online, so have a government-issued ID ready. If you're in a different state because you worked remotely, file in the state where you physically worked, not where Nike is headquartered.
Oregon calculates your weekly benefit based on your earnings in the base year, capped at $733 per week.6 If your salary was high, expect to hit that cap. File now so the clock starts running in your favor.
Use the post-layoff checklist to make sure you have everything you need before you log in.
What should you do about your severance agreement?
A severance agreement is a contract where the company pays you money in exchange for releasing certain legal claims. Before you sign anything, you need to know your rights under the Older Workers Benefit Protection Act (OWBPA).
If you're 40 or older, federal law gives you time before you're allowed to sign. For a group layoff (two or more people), OWBPA requires Nike to give you at least 45 days to review the agreement.2 For an individual termination, it's 21 days.2 Given that Nike's cuts span corporate functions, it's almost certainly a group program, which means 45 days.
After you sign, you have 7 more days to change your mind. That's the revocation window.2 The agreement cannot become effective until those 7 days are up. That means Nike legally cannot pay you severance until day 8 after you sign.
Don't sign on your last day in the office. Take the full window. Read the agreement carefully, specifically the sections that describe what claims you're waiving, whether there's a non-disparagement clause, and what happens to your benefits during the severance period. These terms are sometimes negotiable, especially non-disparagement scope and severance amount.
If you're under 40, OWBPA does not apply, but you still have whatever time the agreement gives you. Read it before you sign it regardless of your age.
What about your health insurance?
COBRA is a federal law that lets you keep your Nike-sponsored health coverage after separation, as long as you pay the full premium yourself. The full premium includes both the portion you used to pay and the portion Nike paid, plus a 2% administrative fee.
Average individual COBRA coverage in 2026 costs $703 per month.3 That's a significant jump from what you were paying as an active employee, when Nike was covering the majority of the cost.
You have 60 days from your coverage end date (or from the date Nike sends you the COBRA notice, whichever is later) to elect coverage.3 Here's the part most people don't know: COBRA election is retroactive. You can wait the full 60 days, and if you need medical care during that window, then elect COBRA and it will cover you back to your coverage loss date. This makes COBRA a form of backup coverage you don't have to pay for unless you actually use it.
Your other option is the Health Insurance Marketplace. Losing job-based coverage is a qualifying life event that triggers a Special Enrollment Period of 60 days.4 Marketplace plans may be significantly cheaper than COBRA depending on your income during unemployment, because you may qualify for premium subsidies. Check healthcare.gov and run the comparison before electing COBRA.
If you have an FSA, ask HR about the grace period and what expenses you can still submit after your last day.
Do you have stock options or RSUs?
Nike is a publicly traded company, so if you received equity as part of your compensation, timing matters a lot after termination.
Incentive Stock Options (ISOs) have a 90-day post-termination exercise window under IRC Section 422.5 If you don't exercise your vested ISOs within 90 days of your termination date, they automatically convert to Non-Qualified Stock Options (NQSOs). NQSOs are taxed as ordinary income when exercised, rather than at the lower long-term capital gains rate that ISOs can qualify for. That's a meaningful tax difference. Mark the 90-day date on your calendar the day you're let go.
Exercising ISOs can also trigger Alternative Minimum Tax (AMT) exposure if the spread between the exercise price and fair market value is large. This is a real risk worth modeling before you exercise, especially on a large grant. A CPA who works with equity compensation can run the numbers quickly.
Restricted Stock Units (RSUs) typically forfeit if they haven't vested by your termination date. Check your equity agreement for any acceleration provisions, which sometimes apply in a reduction-in-force. If Nike's restructuring qualifies as a company-triggering event under your grant, some unvested RSUs might vest automatically.
Log into your equity portal (Fidelity, E*Trade, or whichever platform Nike uses) and pull your grant statements before your corporate account access is revoked.
What about taxes on your severance?
Severance pay is wages. The IRS taxes it the same way. When Nike processes your severance payment, federal law requires them to withhold at the supplemental wage rate of 22% on amounts up to $1 million.5 That's the statutory withholding rate, but it's not necessarily your actual tax rate.
If your total income for 2026 (salary earned before layoff, plus severance, plus any investment income) puts you in a higher marginal bracket, you'll owe the difference when you file your return. The 22% withholding is a floor, not a ceiling.
Estimated taxes matter here. If you received a large severance payment and not enough was withheld, you may need to make an estimated tax payment. The Q3 2026 estimated tax deadline is September 15, 2026.5 If your layoff came after that date, the Q4 deadline applies instead. Check with a tax professional if your severance was substantial.
Oregon also has a state income tax, so you'll owe state tax on your severance in addition to federal. Oregon's income tax is progressive, reaching a top rate that applies to higher earners. Factor both federal and state into your planning.
What do you do with your 401(k)?
Your 401(k) balance stays in Nike's plan after you leave. You have options, and none of them require you to decide immediately, but you should understand the rules before any distribution lands in your hands.
Your three main choices are: leave the balance in Nike's plan (usually allowed if your balance is above $5,000), roll it directly to an IRA or a new employer's plan (the cleanest option, no taxes withheld), or take a cash distribution (taxed as ordinary income, plus a 10% early withdrawal penalty if you're under 59 and a half).
If Nike sends you a check directly, that's an indirect rollover. Federal law requires you to deposit the full amount, including the 20% they are required to withhold, into an eligible retirement account within 60 days.5 If you miss the 60-day window, the entire distribution is treated as taxable income. The withheld 20% becomes a credit on your tax return, but you have to come up with the remaining 80% out of pocket to complete the rollover without tax consequences.
The easiest move: request a direct rollover. The money goes plan-to-plan, no check is issued to you, and no withholding applies.
Deadlines and rules described here reflect federal law and general state guidelines as of the article date.
The Layoff Guide
The deadlines above apply whether or not you are tracking them. The Layoff Guide from Layoff HQ is a 33-page field guide that covers all twelve post-layoff deadline events in the order they arrive: unemployment, the severance review and revocation windows, COBRA and the Marketplace, your FSA, your equity window, your 401(k), and your taxes. Each event comes with timed checkpoints, the decision math, and the one mistake that costs people the most, plus a fill-in worksheet that turns your last day worked into your complete personal deadline calendar. One-time purchase. No subscription. Instant download, with a 14-day full refund if it is not useful.
Get the Layoff Guide, $39 or build your free Decision Calendar.
- Reuters, "Nike plans more job cuts to boost sputtering turnaround, forecasts steep revenue drop," October 1, 2026. reuters.com
- U.S. Equal Employment Opportunity Commission, Age Discrimination in Employment Act / OWBPA. eeoc.gov
- U.S. Department of Labor, COBRA continuation coverage. dol.gov; KFF, Employer-Sponsored Health Insurance, 2026. kff.org
- HealthCare.gov, Special Enrollment Periods. healthcare.gov
- IRS Publication 15, Supplemental Wages. irs.gov; IRC Section 422(a)(2); IRS Rollover Chart. irs.gov; IRS Estimated Tax Deadlines. irs.gov
- Oregon Employment Department, Unemployment Insurance Eligibility. unemployment.oregon.gov