Nike is cutting 775 employees to boost its bottom line and accelerate automation. The layoffs mainly affect U.S. distribution center roles in Tennessee and Mississippi. The goal is to reduce complexity and improve efficiency. Nike aims to strengthen operations, invest in technology, and cut costs to achieve long-term growth and better margins.

As AI and automation become more prevalent in corporate America, distribution center jobs are at risk. UPS previously announced 48,000 job cuts due to automation. Nike’s 775 layoffs are part of a larger trend in the industry. CEO Elliott Hill is working to revive Nike’s sales and margins after a period of decline.

Under former executive John Donahoe, Nike prioritized direct selling and saw declining sales. The company’s distribution centers expanded but struggled to support the increased staffing levels. Hill is focused on rebuilding relationships with wholesale partners, clearing out old inventory, and driving innovation. Nike’s net income fell 32% in the fiscal second quarter due to various challenges.

Read more at CNBC: Nike to lay off 775 employees at U.S. distribution centers