Nike is laying off hundreds of U.S. distribution center workers as it accelerates automation and restructures its supply chain operations.
The athletic apparel giant plans to cut 775 jobs, primarily at distribution centers in Tennessee and Mississippi, according to company statements and reporting by CNBC. The layoffs are focused on warehouse and fulfillment roles as Nike increases its use of advanced automation and streamlines its logistics footprint.
The company has not disclosed how many total workers it employs at U.S. distribution centers.
“To power our ‘Win Now’ actions, we’re taking steps to strengthen and streamline our operations so we can move faster, operate with greater discipline, and better serve athletes and consumers,” a Nike spokesperson said. “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 operates a major distribution hub in the Memphis area, which serves as a primary supply chain operation for national shipping. The company employed up to 1,900 workers as of April 2020, according to the The Commercial Appeal.
Nike also employs an unspecified number of workers at a distribution center in Byhalia, Mississippi, about 43 miles southeast of Memphis.
Nike (NYSE: NKE) is an athletic footwear and apparel corporation headquartered near Beaverton, Oregon. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of $46 billion last year.
The company did not provide a timeline for the layoffs or specify which facilities would be affected.
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