[griojw id=”YgAlSpQp” playerid=”GqX43ZoG”]
In less than three days, Nike has lost two top executives including President Trevor Edwards due to complaints about issues with in appropriate workplace behavior.
On Thursday evening, Edwards was the first to go- preemptively announcing his resignation and intention to retire in August. This came as a shock to many as the 55-year old was the No.2 employee at Nike and widely considered a leading potential successor to it’s current CEO and Chairman Mark Parker.
The very next day, Jayme Martin, vice president and general manager of global categories for Nike, was fired from the company effective immediately, according to CNBC. Martin joined Nike in 1997 and was Edward’s direct report.
A Nike spokesman did confirm there were no direct allegations against Edwards.
Managing the Damage Control
In an internal communication obtained by ESPN, Nike CEO and Chairman Mark Parker appeared to attempt to reassure employees with concerns about the brewing controversy:
“Over the past few weeks, we’ve become aware of reports occurring within our organization that do not reflect our core values of inclusivity, respect and empowerment at a time when we are accelerating our transition to the next stage of growth and advance of our culture… This disturbs and saddens me.”
READ MORE: Outgoing American Express CEO Ken Chenault joins Airbnb’s board of directors
Parker wrote that it was his wish that Nike foster an environment where issues can be brought up as soon as they occur. To support this open door initiative, Nike introduced a confidential email and phone number that employees may call if they felt threatened.
Executive Departures Ring Alarms
Without a doubt recent events raise many questions, most pressing– what exactly are the work issues at the company and how will it affect the overall financial health of the company?
READ MORE: Nike releases its first sports hijab
According to CNBC, Nike will be reviewing the company’s protocol for dealing with internal complaints.
“We’ve heard from strong and courageous employees,” Parker wrote in Thursday’s memo. “This has been a very difficult time and we are still talking to team members to better understand what we need to change.”
Unsurprisingly, Nike stock ended the week down on the Dow Jones.