Nike has announced plans to eliminate 775 positions at its U.S. distribution hubs in Tennessee and Mississippi as it rolls out advanced automation technologies. The cuts, which predominantly affect manual picking and sorting roles, follow last summer’s reduction of 1,000 corporate posts and February 2024’s 1,600‐job restructuring. With approximately 77,800 employees globally, these new reductions equate to roughly 1% of Nike’s total workforce. The company plans to deploy robotics and AI‐driven conveyor systems to increase throughput by an estimated 20% and reduce order‐fulfillment cycle times by up to 30%, according to internal projections.

Under CEO Elliott Hill’s “Win Now” strategy, Nike is recalibrating its channel mix to bolster long‐term profitability. The volumes processed through distribution centers have fallen as Nike scales back its direct‐to‐consumer focus—where digital sales slid 15% last quarter—and reengages wholesale partners, whose sales declines have been milder. Last year’s Nike Direct revenues dropped 12%, prompting CFO Matthew Friend to cut promotional days and lower markdown rates. Management targets a 200-basis‐point improvement in adjusted EBIT margin over the next two fiscal years and expects the automation initiative to contribute up to 50 basis points of margin expansion by fiscal 2027.