Nike to cut 775 employees as it accelerates 'automation' at U.S. distribution centers
Nike is cutting 775 employees, primarily from jobs at distribution centers in Tennessee and Mississippi.
TL;DR
- Nike is cutting 775 employees, adding to 1,000 cuts from last summer.
- The layoffs primarily affect distribution center roles in Tennessee and Mississippi.
- These actions are aimed at reducing complexity, improving flexibility, and creating a more efficient operation.
- Nike plans to accelerate the use of advanced technology and automation.
- The cuts are part of Nike's goal to achieve long-term, profitable growth and improve margins.
- The move follows a period of slowing sales and shrinking margins under CEO Elliott Hill.
- Distribution center staffing had previously ballooned under a direct selling strategy, but current volume does not support these levels.