Nike has announced plans to eliminate 775 positions at its U.S. distribution centers in Tennessee and Mississippi as part of a broader push to accelerate automation. The company will deploy automated sortation systems, robotic picking arms and machine­-vision scanners across its logistics network. Nike expects these technology investments to boost throughput by up to 30% per facility, reduce order-fulfillment lead times by two days on average and lower distribution labor costs by approximately 8% annually once fully implemented.

Under CEO Elliott Hill, Nike has shifted away from the direct-to-consumer expansion that drove distribution-center growth under former CEO John Donahoe. After adding 1,000 corporate headcount last summer, the company reversed course to realign with wholesale partners and streamline its supply chain footprint. In February 2024, Nike cut 2% of its global workforce (more than 1,600 roles), followed by a further 1% reduction in corporate roles in mid-2025. These moves reflect Nike’s strategy to improve flexibility, simplify its network from 15 to 12 core distribution hubs by 2027, and focus on facilities with the highest utilization rates.

Nike expects the distribution-center restructuring and automation rollout to contribute to a 50-basis-point improvement in EBIT margin over the next two fiscal years. The company’s digital sales, which declined 15% year-over-year in fiscal 2025, will benefit from faster fulfillment and reduced return rates, currently running at 12% of online orders. Wholesale volumes, down 5% over the same period, should also see improved service levels. CFO Matthew Friend has projected that enhanced logistics efficiency will free up $200 million in working capital and support a return to mid-single-digit revenue growth by fiscal 2027.