Nike is laying off 775 employees in the United States as part of a broader push to streamline operations and accelerate automation at its distribution centers.
The cuts mainly affect warehouse roles in Tennessee and Mississippi, where Nike operates some of its largest facilities.
In a statement, Nike said the layoffs "are designed to reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation."
According to CNBC, the company added that the move supports its goal of returning to "long-term, profitable growth" while better serving athletes and consumers.
"We're taking steps to strengthen and streamline our operations so we can move faster, operate with greater discipline, and sharpen our supply chain footprint," the statement said.
"We are accelerating the use of advanced technology and automation and investing in the skills our teams need for the future."
The layoffs follow other workforce reductions over the past year. In August 2025, Nike cut nearly 1% of its corporate staff under CEO Elliott Hill, who assumed the role in 2024.
Earlier in February 2024, the company announced a 2% reduction, totaling more than 1,600 positions.
Nike has struggled with slowing sales and shrinking margins, including a reported 32% drop in net income for the fiscal second quarter ending December 2025.
Challenges included rising tariffs, a slowdown in the Chinese market, and costs linked to a turnaround strategy focused on reviving wholesale partnerships and cleaning out older inventory.
NIKE $NKE TO CUT 775 EMPLOYEES AS IT ACCELERATES ‘AUTOMATION’ AT U.S. DISTRIBUTION CENTERS - CNBC pic.twitter.com/AnpmhHAuSO
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Nike Streamlines Operations Amid Automation Push
Morningstar analyst David Swarz noted that Nike likely overbuilt its warehouse capacity and staffing levels as sales trends fell below normal in recent years.
He added that the increasing role of AI and automation in distribution centers makes such cuts "not surprising."
Nike reported having 77,800 employees worldwide as of May 2025, including retail and part-time staff, Reuters reported.
Under Hill, the company has been investing heavily in core sports categories such as running and soccer while emphasizing innovation in its sneaker lines.
The move mirrors trends across corporate America, where automation is reshaping distribution roles.
Last year, UPS announced plans to cut 48,000 positions due in part to similar technological upgrades at its facilities.
As Nike works to stabilize its operations, the company emphasized that the layoffs are meant to improve flexibility and operational efficiency, preparing its workforce for a more automated, technology-driven future.
"With these changes, Nike is positioning itself to move faster and respond better to market demands, while equipping employees with skills for long-term growth," the company said.
Originally published on vcpost.com
