A client carries a Nike bag within the Union Sq. neighborhood of San Francisco, Jan. 21, 2026.
David Paul Morris | Bloomberg | Getty Pictures
Nike is chopping 775 workers as the corporate seems to spice up its backside line and speed up its use of “automation,” CNBC has discovered.
The layoffs, that are along with the 1,000 company job cuts the corporate introduced final summer time, primarily affect distribution middle roles in Tennessee and Mississippi, the place the sneaker large operates massive warehouses, individuals conversant in the matter stated.
In an announcement to CNBC, Nike stated the layoffs primarily have an effect on its U.S. distribution operations and are designed to “scale back complexity, enhance flexibility, and construct a extra responsive, resilient, accountable, and environment friendly operation.”
“We’re taking steps to strengthen and streamline our operations so we are able to transfer sooner, function with larger self-discipline, and higher serve athletes and shoppers,” Nike stated within the assertion. “We’re sharpening our provide chain footprint, accelerating the usage of superior expertise and automation, and investing within the abilities our groups want for the long run.”
It’s unclear what number of complete U.S. distribution jobs Nike has.
The corporate added the cuts are a part of Nike’s purpose to get again to “long-term, worthwhile development” and enhance margins.
As the usage of AI and automation sweeps throughout company America, distribution middle jobs are anticipated to take a success. Final yr, UPS introduced plans to chop 48,000 roles — partly due to extra automation at its amenities. It is unclear how precisely Nike plans to develop automation at its distribution facilities and the way a lot of a task that is taking part in in its 775 job cuts.
The layoffs come as CEO Elliott Hill works to show round Nike following years of slowing gross sales and shrinking margins. The struggles got here after former high government John Donahoe pursued a direct promoting technique that prioritized the retailer’s shops and web sites over wholesale companions.
As a part of that technique, Nike’s distribution facilities — and employees inside these amenities — ballooned, however they do not have the amount to assist these staffing ranges, the individuals conversant in the matter stated.
Underneath Hill, Nike has been working to woo again wholesale companions, clear out stale stock and reignite innovation. When reporting earnings for the fiscal second quarter in December, Nike stated its internet revenue had fallen 32% because it contended with tariffs, prices related to its turnaround and a slowdown in its key China market.
