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EEOC looking into claims of discrimination based on diversity at Nike

EEOC looking into claims of discrimination based on diversity at Nike

The agency responsible for enforcing workplace discrimination laws in the U.S. announced on Wednesday that it is looking into Nike. This follows claims that the company’s diversity initiatives may have unlawfully favored certain demographics over white employees and applicants, as detailed in court documents.

The Equal Employment Opportunity Commission (EEOC) reported that Nike has not complied with a subpoena requesting data about its workforce’s racial and ethnic breakdown. This includes records regarding staff chosen for mentoring and development initiatives.

The focus of the investigation centers on allegations that Nike has systematically treated white employees and applicants unfairly, with some claims suggesting they were disproportionately singled out for layoffs.

Nike is preparing to reduce its workforce by several hundred positions as it moves towards greater automation.

The EEOC is looking into allegations of Nike’s diversity efforts that reportedly discriminated against white employees during layoffs.

The agency is examining if Nike violated federal anti-discrimination regulations.

Contact has been made with Nike for a comment regarding these issues.

Nike recently announced Caitlin Clark as its newest signature athlete.

A woman walks with shopping bags in front of a Nike store.

A woman passes a Nike store in Portland, Oregon while carrying shopping bags.

This investigation comes shortly after Nike revealed plans to eliminate 775 jobs, largely affecting its distribution centers in Tennessee and Mississippi, with the goal of automating its supply chain more effectively.

A spokesperson for Nike had indicated that the company is reorganizing and streamlining operations, particularly in the U.S. distribution system, aiming to enhance speed, efficiency, and investment in technology.

The company also recently resumed selling footwear and apparel on Amazon for the first time since 2019.

Equal Employment Opportunity Commission (EEOC)

The EEOC’s investigation aims to determine if Nike’s diversity program has unlawfully discriminated against white employees.

The job cuts in the distribution centers are part of ongoing efforts by Nike over the last couple of years to restructure operations and boost financial results.

Previously, Nike announced plans to cut less than 1% of its workforce in August as part of restructuring efforts led by CEO Elliott Hill.

Additionally, the company disclosed intentions to lay off 2% of its employees in February 2024, impacting over 1,600 workers.

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