Nike is laying off 775 employees to boost profits and increase automation. Distribution center roles in Tennessee and Mississippi will be impacted. The sportswear giant has struggled in recent years, undergoing multiple rounds of layoffs under CEO Elliott Hill. Sales trends have been low, leading to overstaffing concerns.

The layoffs will primarily affect U.S. distribution operations. Analysts suggest overbuilt warehouse capacity and advancements in AI contributed to the decision. Nike had 77,800 employees globally as of May 2025. The company is investing heavily in sneaker lines to refocus on core sports like running and soccer.

Nike reported a drop in gross margins for the second consecutive quarter due to poor sales in China and product mix challenges. A recent data breach also affected the company. The layoffs aim to reduce complexity and support long-term profitable growth. Nike remains committed to streamlining operations for a more efficient future.

Read more at Yahoo Finance: Nike slashes 775 jobs in US to speed up automation, boost profit