Nike has informed employees that it will eliminate 775 positions at its distribution centers in Memphis, Tennessee and Olive Branch, Mississippi as part of an accelerated automation initiative. This reduction follows the 1,000 corporate roles eliminated last summer and the 1,500 positions cut in February 2024. According to company statements, the headcount reduction represents approximately 1% of Nike’s total workforce of 77,800 and is intended to streamline pick-and-pack operations, improve throughput and reduce complexity across its U.S. supply chain. CEO Elliott Hill, who took the helm in October 2024, has prioritized restoring Nike’s gross margins—down for two consecutive quarters—and reviving revenue growth by rebalancing direct-to-consumer and wholesale channels. The shift toward advanced robotics and machine-vision sorting at these southern hubs is projected to lift operating margins over time and support a path back to long-term, profitable growth.

Nike is probing claims by the ransomware group World Leaks that 1.4 terabytes of internal business data were exfiltrated from its networks. Citing a Reuters report, the company confirmed it is ‘actively assessing’ the situation and mobilizing its cyber-incident response team, while emphasizing its commitment to customer privacy and data security. The alleged breach comes as overall reported ransomware incidents declined from 1,512 in 2023 to 1,476 in 2024, with total payments falling from $1.1 billion to $734 million following law enforcement disruptions of two major extortion operations. Nike has not disclosed which systems may have been affected or whether customer information was compromised, but it has notified relevant authorities and is reviewing logs to determine the scope and origin of the intrusion.