Nike is cutting 775 employees as it looks to improve profitability and accelerate the use of automation across its supply chain, CNBC has reported.
The layoffs, which are in addition to roughly 1,000 corporate job cuts announced last summer, primarily affect U.S. distribution center roles in Tennessee and Mississippi, where the company operates large warehouse facilities, according to people familiar with the matter.
In a statement, Nike said the reductions are focused on its U.S. distribution operations and are intended to “reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation.”
The company said it is streamlining its supply chain footprint, increasing its use of advanced technology and automation, and investing in future skills to support long-term, profitable growth and margin improvement.
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Nike did not disclose how many U.S. distribution workers it employs in total.
The move comes as CEO Elliott Hill works to turn around the sportswear giant following several years of slowing sales and declining margins.
Nike has been unwinding a direct-to-consumer-heavy strategy pursued under former CEO John Donahoe, which deprioritized wholesale partners and led to expanded distribution infrastructure that no longer matches current demand, sources said.
Under Hill, Nike has been seeking to reengage wholesale partners, clear excess inventory and reignite product innovation.
In its fiscal second-quarter earnings report in December, the company said net income fell 32%, pressured by tariffs, turnaround-related costs and weaker sales in China.
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