Nike to reportedly cut 775 US warehouse jobs in automation push – report

Core Viewpoint - Nike is planning to eliminate 775 positions at its distribution centers in Tennessee and Mississippi to improve profitability and expand automation [1] Group 1: Workforce Reductions - The job cuts will primarily impact warehouse-based roles at Nike's facilities in the two states [1] - In August, Nike reduced just under 1% of its corporate staff as part of a turnaround strategy led by CEO Elliott Hill, who took over in 2024 [2] - Earlier in February 2024, Nike announced a 2% reduction in roles, equating to over 1,600 positions [2] Group 2: Operational Strategy - Nike stated that the changes aim to strengthen and streamline operations for faster and more disciplined operations, mainly affecting its US distribution network [2] - The measures are designed to reduce complexity, improve flexibility, and support a return to long-term profitable growth [3] Group 3: Financial Performance - Nike reported a second consecutive quarterly decline in gross margins in December, attributed to softer demand in China and efforts to rebalance its product lineup [4] - The recent job cuts are part of a broader restructuring program aimed at restoring profitability [4] Group 4: Leadership Changes - In December 2025, Nike restructured its senior leadership as part of its 'Win Now' turnaround strategy, introducing a new COO role and elevating regional leaders to the senior leadership team [5] - The company eliminated the positions of CTO and CCO, consolidating global and direct-to-consumer sales operations under the CFO [5]