The federal agency that enforces US workplace discrimination laws said Wednesday it is investigating Nike over allegations that its diversity initiatives unlawfully discriminated against white employees and job applicants, according to a court filing.
Reuters reported that the Equal Employment Opportunity Commission (EEOC) said Nike has refused to comply with a subpoena seeking information, including data on the racial and ethnic makeup of the global athletic apparel and footwear company based in Beaverton, Oregon.
The subpoenas also seek a roster of employees selected for mentoring and development programs.
The commission said the investigation centers on claims that Nike deliberately treated white employees and job applicants unfairly, including allegations that they were disproportionately targeted for layoffs.
The agency said it is seeking the records to determine whether Nike violated federal anti-discrimination law.
Nike disputed the commission’s characterization of its cooperation, saying in a statement that it has participated extensively and in good faith in the agency’s inquiry.
“This feels like a surprising and unusual escalation,” a Nike spokesperson told FOX Business. “We have had extensive, good-faith participation in an EEOC inquiry into our personnel practices, programs, and decisions and have had ongoing efforts to provide information and engage constructively with the agency. We have shared thousands of pages of information and detailed written responses to the EEOC’s inquiry and are in the process of providing additional information.”
The company said it is a “proud American company” focused on bringing inspiration and innovation to athletes around the world.
“We are committed to fair and lawful employment practices and follow all applicable laws, including those that prohibit discrimination,” the spokesperson added. “We believe our programs and practices are consistent with those obligations and take these matters seriously. We will continue our attempt to cooperate with the EEOC and will respond to the petition.”
The development comes nearly a week after Nike said it plans to cut 775 jobs, primarily affecting distribution centers in Tennessee and Mississippi, as the company looks to automate more of its supply chain.
A Nike spokesperson previously told FOX Business the company is streamlining and consolidating its operations — particularly within its US distribution network — to move faster, improve efficiency and invest in technology, automation and workforce skills.
The distribution center layoffs follow similar moves by Nike over the past two years aimed at reorganizing operations and improving financial performance.
Nike said in August last year it planned to cut less than 1% of its corporate workforce as part of a turnaround effort under CEO Elliott Hill.
In February 2024, the company announced it would cut 2% of its workforce, affecting more than 1,600 workers.
FOX Business’ Eric Revell and Reuters contributed to this report.
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