Nike Inc., the world’s largest sportswear company, is facing challenges on multiple fronts, including slumped sales and workforce reductions. As the company grapples with these issues, questions arise about the potential role of sneaker resale, particularly in light of former VP Ann Hebert’s son’s involvement in the sneaker resale business.

Ann Hebert, who resigned from her position as VP and general manager of North America in 2021, faced scrutiny when it was revealed that her son was operating a successful sneaker resale business. Some speculate that this conflict of interest may have contributed to Nike’s slumped sales, as consumers question the fairness of a company executive’s family profiting from exclusive sneakers while others struggle to access them. Read more on Ann’s trifling gangster wannabe son’s unethical business here.

Moreover, the impact of sneaker resale extends beyond sales figures to the company’s workforce. Nike’s recent announcement of workforce reductions, totalling about 740 jobs at its headquarters by late June, underscores the challenges it faces in achieving its cost-cutting goals. Sneaker resale businesses run by individuals with insider access to exclusive sneakers at staff prices can be detrimental to the company’s growth, as it erodes consumer trust and undermines efforts to maintain a level playing field in the market.

In a filing with the state of Oregon, Nike’s vice president of people solutions, Michele Adams, referred to the job cuts as a “second phase of impacts” as the company trims its workforce in pursuit of cost savings. CEO John Donahoe previously announced plans to slash global headcount by 2% as part of a broader effort to achieve up to $2 billion in cost savings over the next three years.

The initial layoffs at Nike began in February, with the company aiming to conclude the process by the end of its fiscal year. While the workforce reductions are part of a multiyear cost-cutting plan, the role of sneaker resale in contributing to these challenges highlights the need for companies like Nike to address issues of fairness, transparency, and ethical conduct within their ranks.

As Nike navigates these challenges, it faces an opportunity to re-evaluate its business practices and rebuild trust with consumers and employees alike. By prioritizing integrity, accountability, in the ever-evolving sportswear market.