Nike is eliminating 775 distribution center jobs across Tennessee and Mississippi as part of a major operational restructuring that emphasizes automation and advanced technology. The sportswear giant announced the workforce reduction as part of CEO Elliott Hill’s “win now” strategy, designed to revitalize the company’s revenue growth amid declining sales and intensifying competition.
The job cuts represent Nike’s latest effort to “streamline” operations and “sharpen its supply chain footprint” through increased automation. In a statement to Business Insider, Nike emphasized it is “accelerating the use of advanced technology and automation, and investing in the skills our teams need for the future.” This language signals a fundamental shift in how the company approaches warehouse and distribution operations.
Elliott Hill assumed the CEO role in October 2024, inheriting significant challenges including falling sales figures and mounting pressure from rival brands. The distribution center cuts follow previous workforce reductions, including a 1% corporate workforce reduction in 2025. Nike’s senior leadership also underwent substantial restructuring in 2025, with the company eliminating key executive positions including the chief technology officer and chief commercial officer roles.
With approximately 77,800 employees worldwide as of May, Nike’s latest cuts affect roughly 1% of its global workforce. However, these reductions are concentrated in distribution operations where automation technologies are increasingly replacing human workers. The company frames these changes as necessary steps to “move faster, serve consumers better, and reduce the complexity of its operations footprint.”
The Nike announcement arrives amid growing concerns about AI-driven job displacement across multiple industries. Companies including HP and Amazon have recently cited AI-related efficiency improvements as factors in their own workforce reductions. A recent Massachusetts Institute of Technology study found that AI’s capabilities now overlap with over 11.7% of the US labor market, highlighting the technology’s expanding reach into traditionally human-dominated roles.
Nike maintains that the workforce reduction will support its “path back to long-term, profitable growth,” positioning automation investments as essential to remaining competitive in the evolving retail landscape.
Key Quotes
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
Nike’s official statement to Business Insider frames the job cuts as part of a technological transformation rather than simple cost-cutting, emphasizing both automation adoption and workforce skill development.
We are taking steps to move faster, serve consumers better, and reduce the complexity of its operations footprint
Nike’s statement positions the workforce reduction and automation investments as customer-focused improvements, linking operational efficiency to competitive advantage in the retail market.
Our Take
Nike’s announcement is particularly revealing because it explicitly connects workforce reductions to automation investments, making the AI-job displacement link undeniable. Unlike companies that obscure the relationship between technology adoption and layoffs, Nike’s transparency provides a clear window into how corporate leaders view the automation trade-off. The concentration of cuts in distribution centers—where AI-powered robotics and automated systems are most mature—suggests this is just the beginning. As AI capabilities expand beyond repetitive physical tasks into more complex roles, the 11.7% labor market overlap identified by MIT researchers will likely grow substantially. Nike’s experience may become the template for how major corporations navigate the transition to AI-augmented operations, balancing efficiency gains against workforce disruption while attempting to maintain public trust.
Why This Matters
Nike’s workforce reduction represents a significant case study in how AI and automation are transforming traditional warehouse and distribution operations. As one of the world’s largest sportswear companies, Nike’s strategic pivot toward automation signals broader industry trends that will affect millions of warehouse workers globally.
The timing is particularly significant as AI-driven job displacement moves from theoretical concern to documented reality. When major corporations like Nike, HP, and Amazon simultaneously cite automation and AI efficiency as justification for workforce reductions, it validates predictions that AI will fundamentally reshape labor markets. The MIT study finding that AI overlaps with 11.7% of US jobs suggests we’re witnessing the early stages of widespread disruption.
For businesses, Nike’s approach demonstrates how automation investments are becoming strategic imperatives rather than optional efficiency improvements. Companies that fail to adopt these technologies risk falling behind competitors who achieve lower costs and faster operations. For workers, particularly in logistics and distribution sectors, this news underscores the urgent need for reskilling and adaptation as traditional roles evolve or disappear entirely.