The move comes just hours after independent investigators revealed the late Penn State coach helped cover-up facts about the Jerry Sandusky child molestation scandal.
Nike President Mark Parker said in a statement, "With the findings released today, I have decided to change the name of our child care center at our World Headquarters."
Nike co-founder Phil Knight added, "It appears Joe made missteps that led to heartbreaking consequences." Knight had previously defended Paterno's handling of the scandal.
PSU sports teams have been outfitted by Nike since 1996.