Nike is reportedly laying off 775 employees, primarily in distribution center roles in Tennessee and Mississippi, as it shifts toward automation.
On Monday, January 26, CNBC first reported the layoffs.
In a statement to CNBC, Nike confirmed the layoffs primarily affect its U.S. distribution operations and are designed to “reduce complexity, improve flexibility and build a more responsive, resilient, responsible, and efficient operation.”
“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 in the statement. “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.”
Nike added that the cuts are part of its goal to “return to long-term, profitable growth and improve margins.”
Nike has undergone several rounds of layoffs in recent years as it seeks to revive growth and bolster profitability under turnaround efforts led by CEO Elliott Hill, who took over the top job in October 2024.
In August 2025, Nike announced plans to reduce its corporate workforce by around 1 percent as part of CEO Hill’s efforts to realign team structures across the business. Two other rounds of layoffs in 2025, in May and June, focused on Nike’s technology division, with some work being shifted to third-party vendors. In February 2024, prior to Hill joining the company, Nike announced plans to lay off 2 percent of its staff, or over 1,500 jobs, as part of a broader restructuring.
Nike also continues to realign its management structure, including announcing last week it was replacing leaders of three of its four territories, including the company’s flagging China region.
Nike employs about 77,800 workers worldwide as of its latest annual filing.
Image courtesy Haskell (Nike Memphis, TN Distribution Center)
