Nike Cuts 775 Jobs at Distribution Centers

Nike has announced significant job cuts that will affect 775 employees, primarily at its distribution centers located in Tennessee and Mississippi. This decision is part of a broader effort to enhance operational efficiency and address sluggish sales.

Nike’s Job Cuts Overview

The layoffs, predominantly at distribution centers, are intended to strengthen and streamline Nike’s operations. CEO Elliott Hill emphasized the necessity to “move faster.” These cuts are also aimed at boosting automation and improving the company’s profitability, which has become increasingly important to Wall Street analysts.

Distribution Centers Affected

• Nike operates eight key distribution centers in the United States.
• Five of these centers are situated in the Memphis area, Tennessee.
• The remaining centers are located in Mississippi.

A spokesperson from Tennessee’s Department of Labor & Workforce Development confirmed the receipt of a notice regarding the mass layoffs, although details have not yet been published online.

Company Background and Recent Changes

With approximately 6,000 employees in Memphis, Nike ranks as the third largest employer in the city, according to the Memphis Business Journal’s 2023 report. These job cuts are part of a series of measures taken by Nike to reverse previous management decisions that have led to a decline in performance.

Previous Layoffs and Cost-Cutting Measures

Over the past year, Nike has engaged in several rounds of layoffs:

• In 2023, job reductions occurred across various departments, including human resources and sourcing.
• In 2024, the company eliminated 740 jobs in Oregon as part of a larger 2% reduction in its global workforce.
• Last year, Nike cut less than 1% of its corporate employees.

Global Distribution Footprint

Beyond its U.S. operations, Nike boasts a substantial global distribution network. Currently, the company has 72 distribution centers outside of the United States, located in regions such as:

• Laakdal, Belgium
• Taicang, China
• Tomisato, Japan
• Icheon, Korea

This strategic realignment aims to optimize Nike’s supply chain efficiency while adopting advanced technology and automation initiatives. As the company continues to navigate through its challenges, these layoffs represent another step towards implementing a more sustainable business model.