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EEOC investigating Nike over diversity discrimination allegations

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EEOC investigating Nike over diversity discrimination allegations

The federal agency that enforces U.S. 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.

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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.

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Nike store.

The EEOC is investigating Nike over allegations its diversity initiatives unlawfully discriminated against White employees and job applicants amid layoffs. (istock)

The agency said it is seeking the records to determine whether Nike violated federal anti-discrimination law.

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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.”

NIKE ANNOUNCES CAITLIN CLARK AS ITS NEWEST SIGNATURE ATHLETE

A woman walking with a shopping bag in front of a Nike store.

A woman passes in front of a Nike store in Portland, Oregon.  (Natalie Behring/Bloomberg via Getty Images)

The company said it is a “proud American company” focused on bringing inspiration and innovation to athletes around the world.

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“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.

NIKE RETURNS TO SELL FOOTWEAR, APPAREL ON AMAZON FOR THE FIRST TIME SINCE 2019

Equal Employment Opportunity Commission (EEOC)

The EEOC is investigating whether Nike’s diversity programs unlawfully discriminated against White employees and job applicants. (Andrew Harrer/Bloomberg via Getty Images)

A Nike spokesperson previously told FOX Business the company is streamlining and consolidating its operations — particularly within its U.S. distribution network — to move faster, improve efficiency and invest in technology, automation and workforce skills.

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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.

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In February 2024, the company announced it would cut 2% of its workforce, affecting more than 1,600 workers.

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FOX Business’ Eric Revell and Reuters contributed to this report.

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AMD: $600 Bullseye (NASDAQ:AMD) | Seeking Alpha

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AMD: $600 Bullseye (NASDAQ:AMD) | Seeking Alpha

This article was written by

Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direct chat with Mark for questions. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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