Nike is set to eliminate 775 positions at its U.S. distribution centers in Tennessee and Mississippi, representing roughly 1% of its global workforce. The cuts follow a series of efficiency measures announced last year, including a February 2024 reduction of more than 1,600 roles (2% of total employees) and an August 2023 plan to trim under 1% of corporate staff. Nike has cited the deployment of advanced robotics, automated sortation systems and real-time inventory controls as key drivers behind this latest downsizing.

In public statements, Nike outlined that the job reductions are intended to simplify its distribution network, boost throughput by an estimated 15%, and enhance order-fulfillment speed by up to 20%. Management projects that these operational improvements will contribute to a gradual rebound in EBIT margins, which have contracted for two consecutive quarters, slipping from 46.3% to 45.1% year over year most recently. The footwear and apparel leader also noted persistent headwinds in Greater China, where sales declined by mid-single digits last quarter, underscoring the urgency of efficiency gains elsewhere.

Since his appointment in late 2024, CEO Elliott Hill has prioritized restoring profitable growth through tighter cost controls and selective investment in product innovation—particularly within running and lifestyle segments. Hill increased his personal equity stake by approximately 7% in December 2025, deploying $1 million of his own capital, signaling confidence in the turnaround plan. Nike’s capital expenditures on automation are slated to rise by 12% this fiscal year, while marketing spend is expected to remain flat, reflecting a shift toward technology-driven returns.