As the world’s most expensive sportswear brand, Nike’s signature apparel brand has been under scrutiny for decades over its use of cheap plastic and poor quality.
Now, the company has been forced to admit that some of the clothing is not made in the United States.
And the company is now facing a lawsuit from a former employee who alleges he was forced to work in a factory in Mexico that has been linked to the deaths of workers.
“We do not have a U.S. manufacturing plant in Mexico, and we did not know that at the time we were hired,” Nike CEO Mark Parker said during an earnings call.
In recent years, Nike has been criticized for its low wages, including its labor practices.
As part of its $6 billion restructuring, Nike said it would buy back some of its manufacturing equipment.
The company also said it is going to hire hundreds of thousands of people over the next several years to replace those who are laid off.
Parker said Nike has agreed to buy back about half of its equipment and will use the rest for other projects.
The rest will be sold, and the company will hire more than 1,000 new employees, he said.
Nike’s stock closed up $6.90, or 0.3%, at $109.65.
It was not immediately clear if Parker was referring to the Nike deal that was announced on Thursday, or if the U.K. company was considering selling its U.N. uniforms, which are made in China.
The U. N. is a non-profit organization that oversees international standards for textile production.
Earlier this month, the U