Nike Faces Federal Scrutiny Over Diversity Initiatives

The U.S. Equal Employment Opportunity Commission (EEOC) has launched an investigation into Nike Inc.'s diversity, equity, and inclusion (DEI) programs. The probe, revealed through court filings on February 4, centers on whether the sportswear giant's diversity objectives have resulted in discriminatory practices. This regulatory challenge coincides with a significant reshuffling of the company's executive leadership across key global regions.

According to legal documents, the federal agency is examining Nike's "DEI-related 2025 goals" and their potential consequences. The EEOC has petitioned a court to enforce a subpoena originally issued in September 2025, compelling the company to provide internal records. Specifically, investigators are seeking details on the criteria used for employee terminations and how Nike tracks the racial and ethnic demographics of workers participating in career development initiatives.

In response, Nike stated it has already submitted thousands of pages of documents to the commission and is cooperating with the inquiry. The company characterized the EEOC's decision to seek a court order as a "surprising escalation," noting the approach was unusual given their ongoing collaboration.

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Leadership Restructuring Proceeds Amid Probe

Separate from the federal investigation, Nike is implementing a series of high-level management changes. Effective February 2, the company appointed César Garcia as Vice President and General Manager for Europe, the Middle East, and Africa. This move followed the January 20 announcement naming Cathy Sparks to the equivalent leadership role for China.

These appointments are part of a broader executive reorganization that began in December 2025, which included the creation of a new Chief Operating Officer position. The restructuring affects the leadership teams across the Asia-Pacific region as well.

Market Awaiting Strategic Impact

Investors and analysts will gain further insight into the effects of this strategic realignment when Nike releases its next quarterly results, anticipated between mid and late March. The upcoming report is expected to shed light on the business impact of the leadership changes and the progress of Nike's direct-to-consumer sales strategy.