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Nike cuts 775 jobs at distribution centers in a move to boost automation

The sportswear maker said on Monday that it will trim U.S.-based support roles in Tennessee and Mississippi which will impact one percent of its workforce.
Nike cuts 775 jobs at distribution centers in a move boost 'automation'
As part of a plan to speed up the "use of advanced technology and automation," Nike will layoff 775 workers at its distribution centers.

Nike is laying off 775 employees at its distribution centers mostly in Tennessee and Mississippi as part of a move to speed up efficiency through automation, A Mile. A Minute has learned.

A source familiar with the matter said that the cuts would impact United States-based facilities where the company operates large warehouses.

In a statement, Nike said it looked to “ build a more responsive” operation that would ultimately decrease complexity.

“We’re taking steps to strengthen and streamline our operations so we can move faster, operate with greater discipline, and better serve athletes and consumers,” the statement read. “We are sharpening our supply chain footprint, accelerating the use of advanced technology and automation, and investing in the skills our teams need for the future.”

The cuts to the distribution center workforce and plan to use automation are the latest in a series of steps the company has taken as part of a larger restructuring effort.

Now in his second full year as CEO, Elliott Hill has taken on the task of leading Nike’s rebounding game plan, known as the “Win Now” strategy.

Hill came out of retirement to help stimulate sales and spur a resurgence in key areas like China where revenue has slumped for six consecutive quarters.

Amid sweeping changes since he took over at the company, Hill has reappointed global leadership roles, eliminated redundant management positions, rebuilt relationships with retailers like Foot Locker and resumed selling its products on Amazon.

“You’ve heard me say before we need everyone pushing forward with focus, speed, collaboration and urgency,” Hill said in December after the company announced several corporate leadership changes. “I’m grateful to each of you for answering this call and I know we are making meaningful progress in creating a bright future of our own design.”

All of the moves are aimed at trying to face off against rivals while turning attention to its core performance sports demographic after what was seen as a heavy reliance on lifestyle and retro products.

In August, Nike announced it would eliminate around 1 percent roles from its corporate ranks, or about 1,000 positions.

The last major workplace shift came in February 2024 when 1,500 jobs were trimmed under former CEO John Donahoe, who noted at the time that the company was “not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”

In its last annual report published in May 2025, Nike said it had 77,800 employees globally, which also included retail staff.

The report also noted that the company has eight distribution hubs in the U.S. with five in Memphis.

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