Sportswear giant Nike is laying off 775 employees, primarily from its U.S. distribution centers, as part of a broader strategy to reduce operational complexity and accelerate automation. This latest round of job cuts follows the elimination of 1,000 corporate roles announced last summer.

According to sources familiar with the matter, the layoffs are concentrated at large distribution facilities in Tennessee and Mississippi. In a statement, Nike said the move is designed to "reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation."

The company framed the decision as a necessary step to sharpen its supply chain footprint and invest in advanced technology, aiming to return to long-term profitable growth and improve margins. Nike's distribution network had expanded significantly in recent years under a direct-to-consumer strategy championed by former leadership. However, current CEO Elliott Hill is now working to rebalance the company's approach by rebuilding relationships with wholesale partners and clearing excess inventory.

These cuts reflect a wider industry trend where automation and artificial intelligence are reshaping logistics and warehouse operations. The move follows similar workforce reductions at other major distributors, including UPS, which last year announced plans to cut tens of thousands of roles partly due to increased automation.

Nike's restructuring comes amid a challenging period marked by slowing sales, margin pressure, and a 32% decline in net income reported in its most recent quarter. The company continues to navigate headwinds including global tariffs, turnaround costs, and softer demand in critical markets like China.