Nike is laying off 775 employees, primarily from distribution center roles in Tennessee and Mississippi, as part of efforts to boost profits and speed up the integration of automation in its operations.
According to details received by The Chenab Times, the cuts target warehouse positions in the two US states where Nike maintains large distribution facilities. The company confirmed the move in statements to multiple news outlets, describing it as a step to streamline operations, reduce complexity, and build a more responsive and efficient supply chain. Nike emphasised that these actions support its goal of returning to long-term profitable growth and improving margins.
The layoffs, first reported by CNBC on January 26, 2026, and confirmed by Reuters and other sources, come amid Nike’s broader turnaround strategy under CEO Elliott Hill, who assumed the role in 2024. The company has faced declining sales, shrinking market share to competitors, and challenges including weak performance in key markets such as China. Earlier rounds of job reductions included more than 1,600 positions announced in February 2024—representing about 2% of its workforce—and less than 1% of corporate staff cut in August 2025. As of May 2025, Nike employed 77,800 people worldwide, including retail and part-time workers.
Nike stated it is sharpening its supply chain footprint, accelerating the use of advanced technology and automation, and investing in future skills for its teams. While specifics on the automation technologies remain unclear, analysts have linked the decision to overbuilt warehouse capacity from prior years of subdued sales trends, combined with rapid advances in AI and automation capabilities across industries.
Morningstar analyst David Swarz noted that Nike’s below-normal sales over the past two years likely led to excess staffing and infrastructure in distribution. He described the cuts as unsurprising given these factors and the broader push toward automation in logistics. Similar trends have appeared elsewhere, such as UPS’s announcement last year of plans to eliminate 48,000 roles partly due to increased facility automation.
The affected positions are concentrated in US distribution operations, with no immediate indication of impacts on retail stores, corporate headquarters, or international facilities. Nike’s statement highlighted the intent to operate with greater discipline to better serve athletes and consumers while contributing to improved earnings before interest and taxes margins over time.
This development reflects ongoing pressures in the global sportswear sector, where companies are adapting to shifting consumer demand, supply chain costs, and technological disruption. Nike continues to focus on revitalising core product lines, particularly in running and performance footwear, to regain its position as the leading brand worldwide. The company has not detailed severance or transition support for the affected employees beyond the operational consolidation.
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Global Affairs Desk at The Chenab Times covers international developments, global diplomacy, and foreign policy issues through fact-based reporting, explainers, and analytical pieces. The desk focuses on major geopolitical events, diplomatic engagements, and international trends, with an emphasis on verified information, multiple perspectives, and contextual understanding of global affairs.
