Nike is laying off 775 employees mostly at its U.S.-based distribution centers, according to CNBC. These cuts are in addition to the 1,000 corporate cuts announced last summer, primarily impact distribution center roles in Tennessee and Mississippi where the company operates large warehouses, according to people familiar with the matter.
Nike said in a statement that 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.”
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The sneaker giant said the cuts are part of Nike’s goal to get back to “long-term, profitable growth” and improve margins. It is not clear how many U.S. distribution jobs Nike has.
These layoffs come as Nike attempts to turn around the company’s years of slowing sales and shrinking margins. The struggles came after former CEO John Donahoe pursued a direct selling strategy that prioritized the retailer’s stores and websites over wholesale partners.
As part of that strategy, Nike’s distribution centers have largely expanded, but they don’t have the volume to support those staffing levels,but they don’t have the volume to support those staffing levels.
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Under current CEO Elliot Hill, Nike has been working to woo back wholesale partners, clean out stale inventory and reignite innovation. When reporting earnings for the fiscal second quarter in December, Nike said its net income had fallen 32% as it contended with tariffs, costs associated with its turnaround and a slowdown in its key China market.
The first month of 2026 has already begun with a wave of layoffs. More than 100 major employers across the United States have filed Worker Adjustment and Retraining Notification (WARN) notices signaling planned layoffs set to begin in January, marking another wave of job cuts as the new year gets underway. Companies like Citigroup and Meta have already begun new rounds of job cuts.
Distribution centers are expected to be majorly affected by job cuts, with the increasing implementation of artificial intelligence and automation. Last year, UPS announced plans to cut 48,000 jobs roles, partly because of more automation in its facilities.