New CEO Heidi O'Neill adds two C-suite roles and opens four searches as research weighs the payoff of executive team resets
Lululemon's new chief executive, former Nike executive Heidi O'Neill, has overhauled the senior leadership team. She has created two C-suite roles, opened four searches and parted ways with two executives.
For HR leaders, the Lululemon leadership overhaul is a live test of an unsettled research question. Does replacing a top team help a struggling company recover, or does it add disruption that HR must manage?
Lululemon Athletica Inc. announced on Oct. 7, 2026, that Maggie Gauger, most recently president and CEO of San Francisco-based Athleta, will become president and chief product officer. Joseph Godsey, most recently chief growth officer at Walmart Canada in Mississauga, Ont., will become chief operating officer. Both roles are new and take effect Oct. 26, 2026.
The changes are among O'Neill's first public moves since becoming CEO of the Vancouver-based retailer in September 2026.
"Lululemon is a rare, extraordinary brand, but we have work to do to build a stronger and more competitive company," O'Neill said in a press release.
Who is joining Lululemon's leadership team?
Gauger will oversee design, merchandising, footwear and product innovation. Godsey will run sourcing, production, fulfilment and planning.
Nikki Neuburger, chief brand and product activation officer, and Ted Dagnese, chief supply chain officer, will leave on Nov. 6, 2026. Searches are underway for chief brand, technology, communications and strategy officers. Chief financial officer Meghan Frank will cover brand and technology in the interim. Susan Gelinas remains chief people and culture officer.
On Sept. 3, 2026, Lululemon reported a 4% drop in second-quarter net revenue to US$2.4 billion and cut its full-year outlook to a decline of 5% to 7%. The brand has faced rivals such as Alo and pressure from founder Chip Wilson, The Canadian Press reported.
HR leaders can take cues on how HR leaders can deepen their influence and drive organizational change.
Do leadership overhauls fix struggling companies?
A 1994 Journal of Management Studies paper by Idalene F. Kesner and Dan R. Dalton framed the debate. One option is to replace many senior managers to force change. The other is to avoid turnover that disrupts performance.
A 2022 Journal of General Management study offers qualified support. Its authors are David B. Wangrow of Marquette University, Donald J. Schepker of the University of South Carolina and Vincent L. Barker III of the University of Kansas. They found that replacing top management team members helped explain how weak pre-succession performance, or an outside CEO hire, led to strategic change. O'Neill was hired from outside Lululemon, and the company cut its revenue outlook five days before she started.
A 2017 McKinsey & Company analysis of roughly 600 S&P 500 CEOs found management reshuffles were especially important for CEOs taking over lower-performing companies. However, its top performers reshuffled less often than average in their first two years. Earlier McKinsey research, covering 1990 to 2010, found the speed of top-team change mattered more than the number of changes.
"The pace of change is so incredible, and if you don't manage each of those transitions, transactions, and transformations in the right way – with empathy and care, and making sure that the right communication is happening to the employees, that change can quickly deteriorate," said Andrew Gilchrist, chief human resources officer for wealth management at the Bank of Montreal (BMO).
Gilchrist made the comment in a June 2026 HRD Canada feature on how transformation is reshaping people strategy for HR leaders.
In LiveCareer's July 2026 survey of 900 U.S. workers, 71% of those who had experienced restructuring believed leadership was at least somewhat dishonest or withheld information. The finding was reported in coverage showing most workers don't trust their leaders during periods of change.
