US sportswear giant Nike is reportedly laying off 775 employees to boost the company’s profitability and accelerate the implementation of automation, according to information obtained by American media outlet CNBC.
Last summer, Nike announced the reduction of 1,000 corporate positions. Sources revealed that this round of layoffs is a further step beyond last year’s cuts and primarily impacts positions in distribution centers located in Tennessee and Mississippi. Nike operates large warehouse facilities in these regions.
In a statement provided to CNBC, Nike noted that the layoffs primarily affect its distribution operations in the US and are aimed at “reducing complexity, increasing agility, and establishing a more responsive, resilient, accountable, and efficient operational framework.”
“We are taking steps to strengthen and simplify operations so that we can act more swiftly, operate more rigorously, and better serve athletes and consumers,” Nike said in the statement.
Nike stated that the company is optimizing its supply chain layout, accelerating the adoption of advanced technology and automation applications, and investing in and cultivating the skills required for the future workforce.
The total number of positions at Nike’s distribution centers in the US is currently unknown.
The company added that the layoffs are part of Nike’s efforts to return to “long-term, profitable growth” and increase its profitability target.
With the widespread adoption of artificial intelligence (AI) and automation technology in the American business landscape, job positions in distribution centers are expected to be impacted. Last year, UPS announced plans to lay off 48,000 employees, partly due to increasing levels of automation in facilities.
In recent years, large-scale job cuts in major US corporations have been frequent. A report released by employment consulting firm Challenger, Gray & Christmas in early November revealed that the number of job cuts in US companies had surpassed one million by November in 2025, reaching 1.17 million.
In October 2025, Amazon announced the layoff of 14,000 employees to intensify its investment in AI. Amazon stated that despite planning to continue recruiting in key strategic areas, ongoing layoffs would continue over the next year.
On January 13th of this year, Meta announced the layoffs of over 1,000 employees, primarily targeting the Reality Labs division. The purpose is to shift resources from virtual reality and metaverse products towards the research and development of AI wearable devices and smartphone features. This marks the first large-scale layoff wave in the Bay Area’s tech industry in 2026.