Companies

Nike Streamlines Operations: 775 Job Cuts at U.S. Distribution Centers

In efforts to optimize efficiency, the American sportswear giant has downsized its domestic workforce to “streamline operations and enforce greater discipline,“ according to a Reuters report.

Nike Streamlines Operations: 775 Job Cuts at U.S. Distribution Centers
Nike Streamlines Operations: 775 Job Cuts at U.S. Distribution Centers

Modaes

Nike cuts staff to reduce costs. As part of the U.S. sports equipment company’s plan to accelerate the automation of its manufacturing processes, about 755 people will be laid off at distribution centers in Tennessee and Mississippi, in the United States, according to Reuters.

 

This measure will only affect centers located in Tennessee and Mississippi, where the company seeks to reduce the complexity of its operations, becoming more “efficient” in order to embark on a path towards long-term profitable growth.

 

As the group told Reuters, “we are taking steps to strengthen and streamline our operations so that we can move faster and operate with greater discipline”.

 

Nike had, as of May 2025, around 77,800 employees worldwide, including retail and part-time staff, according to its annual report.

 

 

 

 

Over the past year, Nike has restructured its top management as part of CEO Elliott Hill’s plan to revitalize the group. In early December, the sportswear retail giant’s former chief commercial officer, Craig Williams, left the company after a seven-year tenure, followed by Muge Dogan, chief operating officer, who remained with the company for two years.

 

In late January, Nike revamped its management teams in Europe and Asia by appointing Cesar Garcia as vice president and general manager for Europe, Middle East and Asia (Emea), who takes over from Carld Grebert, who is retiring after thirty years with the company.

 

Nike, which is in the midst of a relaunch plan, unveiled its Win Now strategy early last year, with five sports, three countries and five cities as priorities: running, basketball, soccer, training and sportswear as priority sports, starting in the United States, China and the United Kingdom and focusing on New York, Los Angeles, London, Beijing and Shanghai.

 

Last October, the Oregon-based multinational reported its fiscal year’s performance, with results for the first quarter. In the period ended August 31st, the swoosh company achieved sales of $11.72 billion, an increase of 1% compared to $11.589 billion in the same period last year. Nike ended 2024 with a 10% drop in sales, down 12% in the fourth quarter.