Nike Plans To Lay Off Hundreds Of Employees As It Pushes To Automate Its Supply Chain Across Its US Distribution Centers – AfroTech
Nike is announcing a new round of layoffs in favor of automation.
Layoffs Explained
CNBC reports that the company intends to lay off 775 employees, targeting those at its distribution operations across the U.S., primarily in Tennessee and Mississippi, as it aims to simplify its processes, improve responsiveness and flexibility, and establish efficiency and resilience in its operations. Such plans are part of its efforts to automate its supply chain, notes Fox Business. Nike did not provide its total number of U.S. distribution jobs.
“To power our Win Now actions, 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,” a Nike spokesperson told the outlet. “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. Our actions to consolidate our operations primarily impact our U.S. distribution operations.”
This follows the retail giant’s report of slowed sales and margins, which CNBC notes resulted from former top executive John Donahoe’s strategy that favored Nike’s own stores and websites over wholesale partners. This led to increased hiring in its distribution operations.
The layoffs are also intended to ensure the company is positioned for long-term growth as it aims to improve its bottom line under the leadership of Nike CEO Elliott Hill, per FOX Business.
“These actions are designed to reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation and to support our path back to long-term, profitable growth, including contributing to improved EBIT margins over time,” Nike said, according to the outlet.
As it works to shift the business toward more favorable outcomes, Nike mentioned in August 2025 that it intended to lay off less than 1% of its corporate workforce, CNBC reported. The year prior, the company stated it was laying off 2% of staff, which amounted to more than 1,500 roles, amid restructuring efforts, per the outlet.
