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Nike Automates, Cuts 775 Jobs to Boost Profits
27 Jan
Summary
- Nike is implementing job cuts affecting 775 employees.
- The layoffs are aimed at increasing profits and automation.
- Distribution center roles in Tennessee and Mississippi are impacted.
Nike is reducing its workforce by 775 employees as part of a strategic initiative to enhance profits and accelerate automation adoption. These significant cuts are expected to primarily impact roles within distribution centers located in Tennessee and Mississippi, where the company maintains substantial warehouse operations.
This recent round of layoffs builds upon earlier workforce adjustments. In February 2024, Nike announced plans to eliminate over 1,600 jobs, representing 2% of its total workforce. Prior to that, in August of the previous year, the company had also signaled intentions to reduce its corporate staff by less than 1%.
Under the leadership of CEO Elliott Hill, Nike is focusing its investments on its running shoe and sneaker lines to recover lost ground in these key market segments. However, the company has faced financial headwinds, reporting a drop in gross margins for two consecutive quarters as of December. Challenges include sluggish sales in China and ongoing efforts to recalibrate its product offerings.
