Nike Inc. has ended an initiative that gave employees an extra week off each year to promote mental health and wellness.
Nike’s annual “Wellness Week,” which started in 2021, had been held each August, with the world’s largest sportswear company powering down its corporate headquarters in Beaverton, Ore., to give staff more time to unwind.
Chief People Officer Treasure Heinle told staff this week that the program was instituted as the world endured COVID-19, but the company is now in a “pivotal moment” that requires changes in how employees approach their work, according to a replay of the meeting reviewed by Bloomberg News.
“Today is very different than a few years ago,” Heinle told them. “And that’s why we’re making this change.”
Perks like Wellness Week emerged at Nike, Spotify Inc. and other organizations during the pandemic as Americans struggled to cope with the strain of lockdowns, social isolation and fear of getting sick.
Therapists surveyed by the American Psychological Assn. in 2021 reported a surge in demand for treatment of anxiety, depression and stress-related disorders, and the U.S. Surgeon General issued guidelines on workplace well-being.
As the pandemic retreated, however, companies have rolled back many of these mental health initiatives.
Nike Chief Executive Elliott Hill has been reorganizing the retailer since coming out of retirement to take the top job last year, restructuring management and teams throughout the company. He’s trying to lead a turnaround by refocusing Nike on sports such as 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 said in the meeting, which included staff from both corporate and stores. “We need to continue to show up and deliver with a sharp focus so we can get back to winning.”
Nike expects sales to decline in the low-single digits this quarter, in line with Wall Street’s expectations. Its stock has fallen nearly 13% this year through Thursday’s close.
Bhasin writes for Bloomberg.
