Nike to Cut 775 Jobs as It Expands Automation at U.S. Distribution Centers

New York: Nike is cutting 775 jobs, mainly at its U.S.-based distribution centers, as the company accelerates the use of automation to improve efficiency and profitability.

The job cuts will largely affect distribution facilities in the U.S. states of Tennessee and Mississippi, according to people familiar with the matter.

In a statement, Nike said the layoffs are part of efforts to streamline operations, reduce complexity, and build a more flexible and efficient supply chain.

“We’re taking steps to strengthen and simplify our operations so we can move faster and better serve consumers,” the company said. Nike added that it is increasing the use of advanced technology and automation while investing in future skills.

The layoffs come on top of around 1,000 corporate job cuts announced by the company last year.

Nike did not disclose how many total employees work across its U.S. distribution centers.

The move comes as companies across the U.S. increase automation in warehouses and logistics operations. Several large firms have reduced staffing in distribution roles as technology replaces manual tasks.

The job cuts also come as Nike’s chief executive Elliott Hill works to turn around the company after years of slowing sales and falling margins.

Nike has been adjusting its strategy following an earlier push toward direct-to-consumer sales under former executive John Donahoe, which expanded distribution operations beyond current demand.

The company said it remains focused on returning to long-term profitable growth.