Sporting goods manufacturer Nike has announced a leadership change. Elliott Hill will replace current CEO John Donahoe effective October 14, reports “Manager Magazine“. Donahoe, who became Nike’s chief executive in early 2020, will remain in a consulting role through the end of January. Nike shares temporarily rose about 10 percent after the announcement.
New boss knows Nike well
Hill has worked at Nike for 32 years and held leadership positions in Europe and North America before retiring in 2020. This was meant to address issues in the US market and a lack of innovation. Outgoing CEO Donahoe placed a greater emphasis on direct sales during his tenure.
During his tenure, Donahoe won prestigious victories against his biggest rivals. Adidas. The American sports equipment manufacturer will replace its German rival as the supplier of the German national soccer team starting in 2027, reports “Sports show“.
Donahoe's strategy didn't work
As a result of Donahoe's strategy, according to “Manager Magazine,” Nike lost shelf space to competitors. In addition, sales estimates fell in June, leading to a 20 percent drop in stock prices.
Under Donahoe's leadership, technological innovation was neglected, according to “mirror“. The company has also flooded the market with new editions of its classic Air Force 1 and Air Jordan 1. Nike is currently undergoing a cost-cutting program initiated by Donahoe that is intended to cut $2 billion in costs. Hill is now expected to lead the company out of the crisis.