Nike Under Investigation by EEOC for Alleged Discrimination Practices
On Wednesday, the federal agency responsible for enforcing workplace discrimination laws in the U.S., the Equal Employment Opportunity Commission (EEOC), revealed it is looking into Nike. The investigation is based on claims that Nike’s diversity initiatives may be unlawfully discriminating against white employees and applicants, according to court documents.
The EEOC mentioned that Nike has not complied with a subpoena demanding information about the company’s racial and ethnic demographics, which plays a critical role in the president’s investigation. This subpoena also requests details regarding employees who have been chosen for mentoring and development programs.
The focus of the investigation appears to be on claims that Nike has mistreated white employees and job seekers, allegedly singling them out for termination.
The agency is currently reviewing records to establish whether Nike has breached federal anti-discrimination laws.
Nike responded to these claims by disputing the EEOC’s assessment of its cooperation, stating that they have actively participated and communicated in good faith throughout the process. A Nike spokesperson expressed surprise at what they described as an “unusual escalation.” They emphasized that Nike had shared extensive information and was continuing to provide additional details to the EEOC.
The spokesperson also stated that Nike is a “proud American company” dedicated to inspiring athletes globally, stressing their commitment to fair employment practices and compliance with all relevant laws which prohibit discrimination. They reassured that Nike would continue working with the EEOC to address the situation.
This announcement comes less than a week after Nike revealed plans to eliminate 775 jobs, mainly in its distribution centers located in Tennessee and Mississippi, as part of an effort to automate its supply chain further.
Previously, a spokesperson noted that the company is restructuring and consolidating operations within the U.S. distribution network. This aims to increase efficiency and enhance investment in technology, automation, and employee development.
These cuts follow similar steps Nike has taken in the last two years to streamline operations and boost financial performance. Last August, the company had announced plans to lay off less than 1% of its workforce in a turnaround initiative under CEO Elliott Hill. More recently, they indicated intentions to cut 2% of the workforce in February 2024, affecting over 1,600 employees.
