Nike Layoffs Accelerate Distribution Automation
Nike layoffs consolidate U.S. distribution and speed supply chain automation, tightening the cost outlook and shifting expectations for EBIT-margin recovery.
KEY TAKEAWAYS
- Nike cut 775 jobs at U.S. distribution centers to consolidate operations.
- Move accelerates supply chain automation and sharpens the U.S. distribution footprint.
- Actions aim to reduce complexity, boost efficiency and support improved EBIT margins.
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Nike Inc. (NKE) announced layoffs on January 26, 2026, targeting U.S. distribution centers to consolidate operations and accelerate automation. The move aims to boost efficiency and support longer-term improvements in EBIT margins, a measure of operating profit.
Scope and Workforce Impact
Nike plans to cut 775 jobs, primarily at distribution centers in Tennessee and Mississippi, representing about 1.0% of its total workforce. This reduction is part of the company’s "Win Now" program under CEO Elliott Hill. It follows earlier workforce cuts of roughly 2.0% in February 2024 and under 1.0% in corporate staff reductions in August 2025.
Automation and Supply Chain Consolidation
The company said these layoffs will consolidate U.S. distribution operations and sharpen its supply chain footprint. Nike is accelerating the adoption of supply chain automation and advanced technology while investing in team skills to support this transition. The measures aim to reduce complexity, improve flexibility and responsiveness, and build a more resilient and efficient operation. Executives view these changes as essential to returning to long-term profitable growth, including improved EBIT margins over time.
