Nike plans to cut approximately 775 jobs, primarily in US distribution centres, as it expands automation to boost efficiency and reduce costs. This move supports efforts to restore profit margins and streamline operations under CEO Elliott Hill.
Most layoffs will impact warehouse facilities in Tennessee and Mississippi, where Nike operates major distribution hubs. These reductions follow last summer’s cut of nearly 1,000 corporate positions.
Nike stated that these job reductions are part of a broader effort to simplify its business and strengthen long-term performance.
Nike is reshaping its supply chain by adopting advanced technology, accelerating automation, and investing in future-ready skills. The company believes these measures will improve speed, operational discipline, and customer service.
However, Nike has not shared how many people work across its US distribution network or provided detailed timelines for automation at specific locations.
Nike’s move reflects a growing trend across the logistics and retail industry. Many companies are turning to automation to lower operating costs and improve margins.
For example, last year UPS announced plans to cut about 48,000 jobs, pointing to efficiency gains from automated systems in its facilities.
The layoffs are happening as CEO Elliott Hill works to turn around Nike’s business after several years of slower sales growth and pressure on profits.
These challenges followed a strategic shift under former CEO John Donahoe, who prioritised direct-to-consumer sales through Nike’s stores and online platforms. This reduced reliance on wholesale partners but rapidly expanded distribution operations.
Over time, sales volumes failed to meet expectations, leaving the company with excess warehouse capacity and staff.
New Direction Under CEO Elliott Hill
Since taking charge, Hill has been working to rebuild relationships with wholesale partners, clear excess inventory, and place a stronger focus on product innovation.
In December, Nike reported a 32% drop in net income for the second quarter, largely due to higher turnaround costs, tariff pressures, and weaker demand in China.
Nike states that the latest job cuts aim to make its supply chain more flexible and resilient, supporting its goal of long-term profitable growth.
As automation continues to expand and the restructuring plan progresses, further changes to Nike’s distribution centre operations may follow.
