Nike to cut 775 jobs at US distribution centers amid automation drive

Nike plans to cut 775 jobs at its distribution centers in Tennessee and Mississippi, Businessinsider reported. The company said the layoffs aim to "streamline" operations.

Nike said in a statement on Monday: "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 are part of CEO Elliott Hill's comeback plan, the "win now" strategy, which aims to return Nike's revenue to growth; Hill took over in October 2024 as the company faced declining sales and increased pressure from rivals.

Nike previously made cuts in 2024 and reduced its corporate workforce by 1% in 2025 as part of a realignment. The senior leadership team was also reshaped in 2025, with the company eliminating the chief technology officer and chief commercial officer roles. Nike had about 77,800 employees worldwide as of May.

Nike said it expects the reduction to support its "path back to long-term, profitable growth." The latest cuts come amid growing concerns that AI will replace workers; companies including HP and Amazon have cited AI-related efficiency as a factor in recent reductions, and a study from MIT researchers found AI's skills overlap with over 11.7% of the US labor market.

Key Topics

Business, Nike, Elliott Hill, Tennessee, Mississippi, Automation