Why Nike is cutting hundreds of jobs, starting at its warehouses

MW Why Nike is cutting hundreds of jobs, starting at its warehouses

By Bill Peters

Nike plans to lay off around 775 people, mainly at distribution centers in Tennessee and Mississippi

Nike has suffered from weaker sales in recent years, and is in the process of a turnaround effort.

Nike Inc. plans to lay off around 775 people in an effort to make its warehouse and distribution network faster and more automated.

The job cuts would take place mainly in distribution centers in Tennessee and Mississippi. CNBC reported the news earlier in the day.

In a statement Monday, the sneaker maker said it was "taking steps to strengthen and streamline our operations so we can move faster, operate with greater discipline and better serve athletes and consumers."

"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," the statement continued. "Our actions to consolidate our operations footprint primarily impact our U.S. distribution operations."

As of May, Nike had around 77,800 employees worldwide. Nike made the announcement as robotics and artificial intelligence start to play a bigger role in managing inventories and product orders.

Shares of Nike $(NKE)$ were down fractionally after hours.

The stock is down around 14% over the past 12 months, as Chief Executive Elliott Hill tries to refocus the company toward the needs of athletes and recharge its business with outside retailers, following weaker sales over recent years.

Analysts have debated where the bottom is for Nike and its stock. The company has tried to offload more casual sneakers that have fallen out of demand and compete with Adidas (ADDYY), On Running $(ONON)$ and others. Tariffs and its business in China remain soft spots.

As CNBC noted, Nike's own distribution centers grew in size as the company, under earlier leadership, tried to focus more on selling sneakers and gear to consumers directly. Nike later said that strategy made some operations more complicated and less efficient.

-Bill Peters

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January 26, 2026 18:27 ET (23:27 GMT)

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