- Nike plans to cut 775 jobs at its distribution centers in Tennessee and Mississippi.
- The layoffs aim to streamline operations amid supply chain and tech enhancements.
- Companies, including Amazon and HP, have cited tech advancements among the reasons for recent layoffs.
Sportswear giant Nike is set to cut hundreds of jobs as it consolidates its US distribution center operations.
The company declared it plans to let go of 775 employees across Tennessee and Mississippi, citing efforts to “streamline” operations. Nike operates warehoapplys in both states.
“We are sharpening our supply chain footprint, accelerating the apply of advanced technology and automation, and investing in the skills our teams necessary for the future,” Nike declared in a statement to Business Insider on Monday.
The shift is a part of CEO Elliott Hill’s larger comeback plan, known as the “win now” strategy, which aims to return Nike’s revenue to growth. Hill took over the sportswear giant in October 2024 as it faced significant challenges, including declining sales and increased pressure from rivals.
Nike created previous cuts in 2024 and last year, reducing its corporate workforce by 1% in 2025 as part of its realignment plan under Hill. The senior leadership team also saw a shake-up in 2025, with Nike eliminating the chief technology officer and chief commercial officer roles, among other alters.
In its statement, Nike declared it’s taking steps to shift quicker, serve consumers better, and reduce the complexity of its operations footprint. The company had about 77,800 employees worldwide as of May.
The latest cuts come as concerns that AI will replace human workers grow stronger, with companies like HP and Amazon citing AI-related efficiency as a factor in recent workforce reductions. A recent study by researchers at the Massachapplytts Institute of Technology found that AI’s skills overlap with over 11.7% of the US labor market.
The company declared it expects the reduction to support its “path back to long-term, profitable growth.”
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