Trek has been on the decline since 2021. In 2020 they saw unprecedented and frankly overwhelming profit margins due to the “bike boom”. Good companies would take the influx of new cashflow and notoriety and reinvest it into long term growth and success. Good companies understand that the good times do not last forever. Many at the Trek understood these ideologies. It's a shame that the "Old boys club" at the top didn't have the same foresight. Trek is now the equivalent to the titanic post-collision with the iceberg, slowly sinking after the captain refused to see what was right in front of him.
The Bad:
- Overstaffing in 2020/2021 followed by layoffs (at HQ) and a hiring freeze that prevented backfilling departures (warehouses) that have now resulted in SEVERE understaffing. Those that made it out on the other side of the 10% reduction are now feeling the effects of a machine missing integral components. The busy season has yet to truly begin and it's already taking a toll on warehouse staff.
- No raises for floor staff in 3 years. Management level hasn’t seen an increase in 2 years.
- The lack of merit increases trickles down to the new hire level. Those that are brought it are hired at a base rate that pales in comparison to similar jobs in the area. This naturally provides less-than-desirable candidates, a good number of which have not lasted longer than a week.
- GPTW Propaganda shoved down your throat. It's a tool to create a “standard” at the company, much like the Level 5 Minibus scores. However these metrics are often misleading, not truly showcasing the state of the company and its “mini-buses”. Survey questions that are geared towards your direct manager whom you often have good relationships with rather than the executives that make the real decisions. Don't get me wrong, having a good score on the survey is a good thing...for YOUR work unit. Obtaining a good score is something to have pride in. However Trek will take these scores and claim the valor associated with them. Issue a survey to collect thoughts on the approval of Trek's executives and it will paint a much different picture.
- An encyclopedia of SKU’s that make inventory management a challenge. "Make products we love and are passionate about" is a phrase that get's thrown around a lot, but it's just not true. 40 models of just city-bikes is insane. Now factor in EBike, Kids, Mountain, Frame only, etc. John once told a story about how Trader Joe's kept it simple by only having a couple versions of their peanut butter and sales grew exponentially. Where's that inspiration going?
- Somehow with no money, we’re still buying more stores. I don't even know where to start with this one.
- Needs to do a better job of laying the groundwork and infrastructure before deploying new product or business practices. I.e. the Red Barn project. Very Very Very rocky day/week/month 1.
