Nike, the renowned athletic apparel giant, is making significant changes to its U.S. distribution centers by laying off hundreds of workers as part of its efforts to accelerate automation and restructure its supply chain operations. According to reports by CNBC, the company plans to cut 775 jobs, primarily at distribution centers located in Tennessee and Mississippi.
These layoffs will predominantly affect warehouse and fulfillment roles as Nike looks to increase its utilization of advanced automation technology and streamline its logistics footprint. Although the exact number of employees at U.S. distribution centers has not been disclosed by the company, it is clear that these changes are part of Nike’s broader strategy to enhance operational efficiency and better serve athletes and consumers.
A spokesperson for Nike emphasized the need to strengthen and streamline operations to facilitate faster decision-making and improved service delivery. The company is focusing on sharpening its supply chain footprint, accelerating the adoption of advanced technology and automation, and investing in the skills required for future success.
One of Nike’s major distribution hubs is located in the Memphis area, serving as a crucial part of its national shipping operations. As of April 2020, this facility employed up to 1,900 workers, as reported by The Commercial Appeal. Additionally, Nike operates a distribution center in Byhalia, Mississippi, located approximately 43 miles southeast of Memphis.
Headquartered near Beaverton, Oregon, Nike is a leading global supplier of athletic footwear, apparel, and sports equipment, generating revenue in excess of $46 billion last year. Despite its success, the company is continuously evolving its operations to adapt to changing market dynamics and customer preferences.
While Nike has not provided a specific timeline for the layoffs or identified the facilities that will be impacted, these strategic changes reflect its commitment to staying competitive and agile in a rapidly evolving industry landscape. For more information on this development, you can visit the original post on FreightWaves titled “Nike to lay off hundreds of distribution workers in Mississippi, Tennessee.”
