Kathrine Frich
A major shift is underway inside one of the world’s biggest sportswear brands.
As technology reshapes logistics, Nike is reducing staff in a move it says is aimed at stabilising performance and cutting costs.
Fresh layoffs
Nike will lay off 775 employees in the United States as part of a restructuring tied to the automation of its distribution network, according to CNBC.
The company said the changes are designed to “reduce complexity” and make its operations more efficient.
The job cuts follow an earlier round of layoffs announced last summer, when around 1,000 positions were eliminated.
Together, the reductions signal a deeper overhaul of Nike’s supply chain.
The company has not disclosed the exact timing of the latest layoffs, but confirmed they are already underway.
Warehouses affected
Most of the affected roles are in Nike’s distribution centres in Tennessee and Mississippi, where the company operates some of its largest warehouses.
These facilities have become central to Nike’s logistics strategy in recent years.
The cuts come as Nike increases its reliance on automation and advanced technologies to move products faster and at lower cost.
Distribution operations are among the areas most exposed to these changes.
Nike did not specify how many workers across its entire US distribution workforce could ultimately be affected.
Strategic rethink
The restructuring follows a period of weak performance, including sharp sales declines, particularly in China.
Analysts have pointed to rising costs and shrinking margins as key pressures on the business.
Under former chief executive John Donahoe, Nike pushed heavily into direct-to-consumer sales, reducing its dependence on traditional retailers.
That strategy required expanding distribution capacity, but it also drove up costs.
The company is now reassessing that approach as it looks to rebalance growth and profitability.
Automation drive
In a statement cited by CNBC, Nike said: “We are optimizing our supply chain, accelerating the use of advanced technology and automation, and investing in the skills our teams need for the future.”
Nike framed the layoffs as part of a broader effort to build a more “responsive” and “resilient” organisation. The company said it remains focused on long-term competitiveness.
Similar moves have been seen across the logistics sector.
Sources: CNBC, elEconomista.es
