A shopper carries a Nike bag in San Francisco’s Union Square neighborhood on January 21, 2026.
David Paul Morris | Bloomberg | Getty Images
nike CNBC reported that the company is cutting 775 employees in an effort to increase profits and increase the use of “automation.”
The job cuts are in addition to the 1,000 job cuts the company announced last summer, and primarily impact roles at distribution centers in Tennessee and Mississippi, where the sneaker giant operates large warehouses, the people said.
Nike said in a statement to CNBC that the job cuts primarily affect its U.S. distribution operations and are aimed at “reducing complexity, increasing flexibility, and building a more responsive, resilient, accountable, and efficient operation.”
“We are taking steps to strengthen and streamline our operations so that we can move faster, operate with more discipline, and better serve our athletes and consumers,” Nike said in a statement. “We are strengthening our supply chain footprint, accelerating our use of advanced technology and automation, and investing in the skills our teams will need for the future.”
It’s unclear how many distribution-related jobs Nike has in the U.S. in total.
The company added that the job cuts are part of Nike’s goal to return to “long-term, profitable growth” and improve profit margins.
Jobs in distribution centers are expected to take a hit as the use of AI and automation permeates across American businesses. Last year, UPS announced plans to cut 48,000 roles. One reason for this is increased automation in facilities. It’s unclear exactly how Nike plans to expand automation at its distribution centers, or how much of a role it played in cutting 775 jobs.
The job cuts come as CEO Elliott Hill works to turn Nike around after years of sluggish sales and shrinking profit margins. The struggles come after former chief executive John Donahoe pushed for a direct sales strategy that prioritized retailers’ stores and websites over wholesale partners.
As part of that strategy, Nike has expanded its distribution centers and staff within its facilities, but there is not enough to support that staffing level, people familiar with the matter said.
Under Hill, Nike has worked to bring back wholesale partners, clear out outdated inventory and reignite innovation. When Nike reported its fiscal second-quarter earnings in December, it said its net profit fell 32% as it battled tariffs, restructuring costs and a slowdown in its key Chinese market.
