Nike announced on Thursday that John Donahoe is stepping down as CEO after a challenging tenure marked by significant missteps in leadership and strategy.

Before joining Nike in early 2020, Donahoe was the CEO of eBay and had experience in the tech industry, which Nike hoped would aid its digital transformation efforts.

Donahoe's lack of deep knowledge about sneaker culture and retail operations contributed to his struggles, particularly in managing relationships with key retail partners like Macy’s 

Under Donahoe, Nike attempted to pivot towards direct-to-consumer sales by reducing wholesale partnerships, which backfired and allowed competitors to gain market share.

Despite challenges, Donahoe successfully navigated the surge in e-commerce during the COVID-19 pandemic, leveraging his tech background to capitalize on increased online demand.

By early 2023, Donahoe acknowledged a slowdown in product innovation at Nike, attributing it to external factors like remote work rather than internal issues.

 In response to declining revenues, Donahoe announced a $2 billion cost-cutting plan, including layoffs, which negatively impacted employee morale and trust.

Elliott Hill, a long-time Nike veteran and former president of consumer and marketplace, will replace Donahoe starting October 14, signaling a return to leadership with industry