Nike has confirmed plans to eliminate 775 positions at its U.S. distribution centers, primarily affecting facilities in Tennessee and Mississippi. These layoffs are in addition to the roughly 1,000 corporate roles cut last summer. According to insiders, the move is designed to reduce operational complexity, enhance flexibility and resilience, and drive productivity through advanced technology. The company’s statement emphasizes investments in workforce reskilling even as it sharpens its supply-chain footprint. The decision aligns with Nike’s broader objective of returning to long-term profitable growth and improving operating margins, following years of margin compression under its prior direct-to-consumer push. Industry parallels include UPS’s announcement last year to cut some 48,000 positions as it integrated more automation into its logistics network.

Nike is investigating a possible cybersecurity incident after a ransomware collective known as World Leaks published an online statement claiming to have exfiltrated 1.4 terabytes of company data related to business operations. The company has engaged internal security teams and external forensic experts to assess the scope and integrity of its systems. Nike reiterated its commitment to consumer privacy and data security, noting that it will coordinate with law enforcement and regulatory authorities as needed. The inquiry arrives against a backdrop of declining global ransomware payments—FinCEN reports that such payments fell from $1.1 billion across 1,512 incidents in 2023 to $734 million over 1,476 incidents in 2024 after law-enforcement actions against two major extortion groups. Nike’s swift response highlights growing C-suite focus on cyber risk amid rising threats to major consumer brands.