Nike to Lay Off 775 Workers at Distribution Centers
Nike has announced significant layoffs, reducing its workforce by 775 employees across various distribution centers. This decision affects primarily facilities located in Tennessee and Mississippi.
Nike’s Strategic Job Cuts
The layoffs are part of Nike’s strategy to rejuvenate sales, which have faced challenges recently. CEO Elliott Hill emphasized the need to cut management layers to streamline operations.
Reasons Behind the Layoffs
- Strengthening and streamlining operations.
- Accelerating automation and technology use.
- Improving overall profitability.
Nike aims to enhance its supply chain efficiency through these changes. The company stated that it is committed to investing in the necessary skills for its workforce as it adapts to new technologies.
Distribution Centers Impacted
The layoffs involve eight major distribution centers in the United States, five of which are situated in the Memphis area. According to Nike’s annual report, this increases the focus on key operational sites.
Context of the Layoffs
The announcement comes on the heels of a prolonged decline in Nike’s sales performance. After taking over from former CEO John Donahoe, Elliott Hill is working to reverse earlier strategies. These included a focus on direct sales and a heavy emphasis on retro sneakers.
Previously, in an effort to cut costs, Nike reduced its corporate staff by less than 1% last year. In 2024, the company laid off 740 workers in Oregon, part of a broader 2% global workforce reduction aimed at saving $2 billion.
Current Employment Landscape
In Memphis, where 6,000 Nike employees are based, the company ranks as the third-largest employer in the city. Current data from the Tennessee Department of Labor indicated that they have received formal notification of the mass layoffs.
Future Outlook
As Nike navigates these workforce reductions, the focus will remain on leveraging advanced technology to streamline operations. The company’s commitment to employee development suggests that it is preparing for a technologically advanced future.
Globally, Nike operates 72 distribution centers outside the United States, with locations in countries such as Belgium, China, Japan, and South Korea, as noted in its annual report.
