Nike plans to eliminate 775 jobs, the company said Monday, with most of the cuts landing at distribution centers in Tennessee and Mississippi. The sportswear giant is framing the move as an effort to simplify its supply chain and speed up the rollout of automation across its warehouse operations.
According to Reuters, the reductions will primarily affect distribution-center roles in Tennessee and Mississippi and are intended to boost profits while accelerating the use of automation.
Nike's explanation for the cuts
In a statement to CNBC, Nike said it was “taking steps to strengthen and streamline our operations so we can move faster,” adding that it would “accelerate the use of advanced technology and automation” while investing in employee skills. The company cast the reductions as part of a broader effort to cut complexity and build what it describes as a more responsive and resilient operation.
Where the cuts land
The layoffs are concentrated at fulfillment and distribution hubs rather than retail stores or manufacturing sites, a shift that could hit logistics workers in the Mid-South particularly hard. OregonLive reports that the Memphis-area operation is a significant part of Nike’s U.S. footprint and that roughly 6,000 people work for Nike in the Memphis area.
A pattern of cuts and automation
Nike has been trimming staff over the last two years as it tries to steady sales and lower costs. Earlier moves included a roughly 2% global workforce reduction that affected about 740 jobs at its Oregon headquarters, along with additional cuts to technology and corporate functions. Boston 25 and Bloomberg covered those rounds of cuts.
WARN notices and local response
State officials in Tennessee confirmed they received notice of a mass layoff tied to Nike’s distribution operations, while Mississippi officials had not immediately returned requests for comment, according to reporting from OregonLive. Under the federal WARN Act, employers that meet certain size thresholds generally must provide 60 days' notice before a mass layoff so workers and local agencies can prepare, according to the U.S. Department of Labor.
Company leaders are likely to face scrutiny from local officials and worker advocates as the cuts roll out. Nike did not immediately respond to a request for comment on Monday, Reuters reported.
