Nike pulls the plug on wellness week for employees
Nike Inc. has concluded a program that provided employees with an additional week off annually to support mental health and wellness. Nike’s annual “Wellness Week,” initiated in 2021, has taken place every August, during which the world’s largest sportswear company shuts down its corporate headquarters in Beaverton, Oregon, allowing employees additional time to relax. Treasure Heinle informed this week that the program was established during the Covid-19 pandemic, but the company is currently at a “pivotal moment” that necessitates changes in employees’ work approaches. “Today is very different than a few years ago,” Heinle stated. “And that’s why we’re implementing this change.”
Benefits such as Wellness Week were introduced at Nike, Spotify Inc., and various other organizations during the pandemic as Americans faced the challenges of lockdowns, social isolation, and the anxiety of illness. In 2021, therapists surveyed by the American Psychological Association noted a significant increase in the demand for treatment of anxiety, depression, and stress-related disorders. Additionally, the US Surgeon General released guidelines focused on workplace wellbeing. As the pandemic receded, companies have begun to retract numerous mental health initiatives.
Nike Chief Executive Officer Elliott Hill has been implementing a reorganization of the retailer since returning from retirement to assume the top position last year, restructuring management and teams across the company. He is attempting to spearhead a turnaround by redirecting Nike’s focus towards sports like running and basketball. “It’s a moment that will require continued shifts from all of us in how we work, how we collaborate, and how we operate as a team,” Heinle stated during the meeting, which included staff from both corporate and stores.
“We must persist in our efforts and maintain a clear focus to return to success.” This quarter, Nike forecasts a decrease in sales that will be in the low single digits, which is in line with the expectations presented. To the conclusion of business on Thursday, the stock has already witnessed a drop of about 13% so far this year.
