Nike plans to cut 775 employees in a push to accelerate automation

Core Viewpoint - Nike is consolidating its US distribution center operations, resulting in the layoff of 775 employees in Tennessee and Mississippi as part of a strategy to streamline operations and enhance efficiency [1][2]. Group 1: Job Cuts and Operational Changes - The company plans to cut 775 jobs to sharpen its supply chain footprint and accelerate the use of advanced technology and automation [1]. - This move is part of CEO Elliott Hill's "win now" strategy aimed at returning Nike's revenue to growth after facing challenges such as declining sales and increased competition [2]. - Previous workforce reductions included a 1% cut in corporate staff in 2025 and a shake-up in senior leadership, eliminating roles such as chief technology officer and chief commercial officer [3]. Group 2: Future Outlook and AI Concerns - Nike expects these job cuts to support its path back to long-term, profitable growth [4]. - The company is responding to growing concerns about AI potentially replacing human workers, as seen in workforce reductions by other companies like HP and Amazon [4]. - A study from MIT indicates that AI's skills overlap with over 11.7% of the US labor market, highlighting the broader implications of automation in the workforce [4].