Nike is laying off around 775 employees across Tennessee and Mississippi as it consolidates its U.S. distribution center operations.
A Nike spokesperson said the consolidation mainly impacts its U.S. operations and is intended to “reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation.” The move will also support Nike’s turnaround strategy and return to long-term profitable growth, “including contributing to improved EBIT margins over time.”
“We are sharpening our supply chain footprint, accelerating the use of advanced technology and automation, and investing in the skills our teams need for the future,” a Nike spokesperson said in a statement.
Changes to its supply chain operations come as Nike enters the “middle innings” of its turnaround, according to CEO Elliott Hill. The executive in December said the retailer was “nowhere near” its potential, but was pleased with some of the progress so far, particularly in North America.
Some of its other regions, including China, will take longer to turn around. Nike shook up leadership in that geography earlier this month, with Asia Pacific and Latin America lead Cathy Sparks taking on a role as vice president and general manager of Greater China. Angela Dong, who previously ran the region, is leaving the company alongside Carl Grebert, who heads up the Europe, the Middle East and Africa geography.
As of December, all of Nike’s regional heads now report to Hill and are members of the senior leadership team. Hill has made significant changes to Nike’s executive team since arriving in October 2024, including cutting its chief technology and chief commercial roles, naming a new global sports marketing lead, adjusting regional leadership and overseeing the retirement of several long-time company veterans.
The executive over the summer also restructured Nike’s teams around key sports instead of categories like men’s, women’s and children, a move that led to layoffs of less than 1% across the corporate team.
