Nike is making significant changes to its distribution centres in Tennessee and Mississippi, US, with plans to cut 775 positions in an effort to boost profitability and enhance automation, as reported by Reuters.
The majority of the job cuts will impact warehouse roles at Nike’s facilities in the two states. This move follows a series of workforce reductions in recent years as the sportswear giant aims to regain market share lost to competitors.
In August, the company reduced its corporate staff by just under 1% as part of a turnaround strategy led by CEO Elliott Hill, who took over in 2024. Earlier in February 2024, Nike announced a 2% reduction in roles, totaling more than 1,600 positions.
According to a statement to Reuters, Nike stated that these changes are aimed at strengthening and streamlining operations to enable faster movement and greater discipline, primarily affecting its US distribution network. The company emphasized that these measures are intended to simplify operations, enhance flexibility, and support long-term profitable growth.
Under Hill’s leadership, Nike has increased investments in its footwear lines and refocused on core sports like running and football. Despite these efforts, the company reported a second consecutive quarterly decline in gross margins in December, citing softer demand in China and product lineup rebalancing, as well as a recent data breach.
The latest job cuts are part of a broader restructuring initiative to restore Nike’s profitability. In December 2025, the company reshaped its senior leadership structure as part of its ‘Win Now’ turnaround strategy, introducing a new Chief Operating Officer (COO) role and elevating leaders from its four geographic regions to the senior leadership team. Additionally, Nike eliminated the positions of Chief Technology Officer (CTO) and Chief Commercial Officer (CCO), consolidating global and direct-to-consumer sales operations under the Chief Financial Officer (CFO).
This article was originally published by Retail Insight Network, providing insights into the retail industry.
Please note that the information provided is for general informational purposes only and should not be relied upon as advice. It is recommended to seek professional advice before making any decisions based on the content.
