Nike has laid off 775 employees in the United States as part of a broader effort to streamline operations, boost profitability and accelerate the use of automation, according to a source cited by Reuters. The job cuts primarily affect distribution centre roles in Tennessee and Mississippi, where the company operates large warehouse facilities, highlighting continued workforce restructuring in its supply chain operations.
The latest layoffs come as Nike works to regain momentum after losing market share to rivals and facing prolonged sales weakness. The sportswear giant has undertaken multiple rounds of workforce reductions in recent years as it adjusts capacity and costs to reflect softer demand and changing operational needs. In August 2025, Nike cut just under 1% of its corporate workforce as part of turnaround efforts led by CEO Elliott Hill, who took over the role in 2024. Earlier, in February 2024, the company announced plans to eliminate more than 1,600 roles, representing about 2% of its global workforce.
Nike said the latest move is focused largely on its US distribution network and is intended to “strengthen and streamline” operations, enabling the company to move faster and operate with greater discipline. Analysts say the cuts reflect a combination of overcapacity and technological change. A Morningstar analyst noted that Nike likely overbuilt warehouse capacity during stronger demand cycles and is now adjusting staffing levels as automation and AI capabilities expand.
As of May 2025, Nike employed around 77,800 people globally, including retail and part-time staff. The layoffs also follow ongoing challenges, including declining gross margins, weak sales in China, and a recent data breach. Together, these pressures continue to reshape Nike’s workforce strategy as it seeks a return to long-term, profitable growth.
