Nike to lay off 775 employees as it ramps up automation
Nike has carried out multiple rounds of layoffs in recent years as it struggles to regain momentum and reinforce its position as a leading global sportswear brand.
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Nike Inc. is laying off around 775 employees as part of its efforts to boost profitability and accelerate the use of automation across its operations, according to a Reuters report.
The job cuts will primarily affect distribution centre roles in Tennessee and Mississippi, where the athletic footwear and apparel maker operates large warehouse facilities. The layoffs come amid a broader restructuring push as Nike looks to streamline operations and revive growth.
In a statement, the company said the workforce reduction is aimed at reducing complexity, improving organisational flexibility, and supporting its path to profitable growth.
Nike has carried out multiple rounds of layoffs in recent years as it struggles to regain momentum and reinforce its position as a leading global sportswear brand. In August 2025, the company cut about 1% of its corporate workforce as part of turnaround efforts under CEO Elliott Hill, who took over the top role in 2024.
The latest cuts also come against a challenging operating backdrop. In the second quarter, Nike reported pressure on gross margins due to weak demand in China and ongoing efforts to reset its product mix. Sales in China fell 17% for the sixth consecutive quarter, highlighting the prolonged slowdown in the key market.
Tariffs have added to the strain. Chief Financial Officer Matthew Friend has said that US tariffs on Southeast Asian countries, where Nike manufactures most of its products, are expected to cost the company $1.5 billion in 2025, calling them a significant headwind.
For the quarter 2, Nike reported revenue of $12.43 billion, while net income declined 32% year-on-year.
As of May 2025, Nike employed 77,800 people globally, including retail and part-time staff, according to its most recent annual report.
Under Hill’s leadership, Nike has been increasing investments in its core sneaker franchises, refocusing on performance-driven sports such as running and soccer, while reshaping its supply chain and operational model.
