Nike is trimming 775 jobs, and the cut runs straight through its U.S. distribution centers. CNBC confirmed the layoffs hit hardest in Tennessee and Mississippi, where Nike runs massive warehouses that once expanded to keep up with an ambitious direct-to-consumer push.
If you’ve followed Nike’s moves over the past few years, this shift won’t feel random. Last summer, the company already cut 1,000 corporate roles. Now the focus has moved to the supply chain. Nike told CNBC the layoffs are tied to a bigger reset inside its U.S. distribution operations, with automation taking center stage.
“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,” Nike said. “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.”
Machines are doing more of the work humans once handled. Nike says the goal is to “reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation.” The company hasn’t shared how many distribution jobs it has in total, or exactly what new automation will look like on the warehouse floor.
The timing matters. CEO Elliott Hill is deep into a turnaround after years of slowing sales and shrinking margins. The trouble followed a strategy led by former executive John Donahoe, who pushed Nike hard toward its own stores and websites while easing off wholesale partners. Distribution centers grew fast. Staffing followed. Sales volume didn’t keep up.
Hill has spent months trying to clean house. He’s rebuilding wholesale relationships, clearing old inventory, and chasing product ideas that don’t feel recycled. In December, when Nike reported fiscal second-quarter earnings, the numbers showed pressure everywhere. Net income dropped 32 percent. Tariffs, turnaround costs, and a softer China market all piled on.
Nike isn’t alone. Automation keeps rewriting the rules across U.S. logistics. UPS said last year it would cut 48,000 roles, partly for the same reason. For workers on the floor, the shift feels personal. For Nike, it’s framed as a step back toward long-term, profitable growth.
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