Sportswear giant Nike is set to cut hundreds of jobs as it consolidates its US distribution center operations.
The company said it plans to let go of 775 employees across Tennessee and Mississippi, citing efforts to “streamline” operations. Nike operates warehouses in both states.
“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,” Nike said in a statement to Business Insider on Monday.
The move is a part of CEO Elliott Hill’s larger comeback plan, known as the “win now” strategy, which aims to return Nike’s revenue to growth. Hill took over the sportswear giant in October 2024 as it faced significant challenges, including declining sales and increased pressure from rivals.
Nike made previous cuts in 2024 and last year, reducing its corporate workforce by 1% in 2025 as part of its realignment plan under Hill. The senior leadership team also saw a shake-up in 2025, with Nike eliminating the chief technology officer and chief commercial officer roles, among other changes.
In its statement, Nike said it’s taking steps to move faster, serve consumers better, and reduce the complexity of its operations footprint. The company had about 77,800 employees worldwide as of May.
The latest cuts come as concerns that AI will replace human workers grow stronger, with companies like HP and Amazon citing AI-related efficiency as a factor in recent workforce reductions. A recent study by researchers at the Massachusetts Institute of Technology found that AI’s skills overlap with over 11.7% of the US labor market.
The company said it expects the reduction to support its “path back to long-term, profitable growth.”
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