Nike to Cut 775 Distribution Center Jobs While Increasing Use of Automation

Nike plans to cut 775 employees, primarily from its distribution centers in Tennessee and Mississippi, as it accelerates its use of automation at those centers, CNBC reported Monday (Jan. 26), citing unnamed sources.

Asked about the report by CNBC, Nike said the cuts are designed to make its distribution operations more efficient and to improve the company’s growth and margins.

“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,” the company said, according to the report. “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’s distribution centers and staff grew when the company’s former CEO John Donahoe adopted a strategy that prioritized selling directly to consumers rather than wholesale partners, according to the report. However, the volumes handled by distribution centers have declined as current CEO Elliott Hill works to bring back wholesale partners.

Last summer, the company cut 1,000 corporate jobs per the report.

PYMNTS reported in March that Nike was shifting continuing its shift from a direct-to-consumer (D2C) model to wholesale relationships. At that time, Nike Direct sales were down 12%, with consolidated digital sales down 15%, but the company’s wholesale sales decline was more muted.

During a March 2025 earnings call, Nike Chief Financial Officer Matthew Friend said of the digital sales: “We are repositioning Nike Digital within an integrated marketplace. To do this, we are reducing promotional days, reducing markdown rates and shifting closeout liquidation to our Nike factory stores.”

Nike’s layoffs last summer amounted to less than 1% of its corporate staff, CNBC reported at the time. They followed the company’s layoffs of 2% of its staff, or more than 1,500 jobs, in February 2024, which the company said was part of its broader restructuring.

Of the corporate job cuts, Nike told CNBC in August: “As we shared in Q4 earnings, Nike, Inc. is in the midst of a realignment. The moves we’re making are about setting ourselves up to win and create the next great chapter for Nike.”