Nike layoffs: Hundreds of jobs cut in latest round as shoe giant embraces supply chain automation

America’s most iconic shoe giant is starting 2026 by laying off workers. Nike has confirmed that it will lay off 775 employees in the United States. The move marks the third year in a row that Nike has cut jobs. Here’s what you need to know about the latest Nike layoffs.

What’s happened?

On Monday, CNBC reported that shoe giant Nike would eliminate 775 jobs. The job cuts will primarily encompass positions at the company’s distribution centers in Mississippi and Tennessee. Nike has warehouses in those states that act as major hubs in the company’s supply chain. The distribution centers store the company’s inventory before shipping the products out to customers and retail partners.

Nike’s most recent round of job cuts is the third in as many years. In 2024, Nike announced it would cut 2% of its total workforce, or about 1,600 roles. Those cuts were made so the company could reduce expenses in response to weakening sales.

Then last year, Nike announced in August that it would cut about 1% of its corporate staff. Those cuts were part of a company realignment, Nike said at the time.

In May 2025, Nike had around 77,800 employees. Today’s confirmed layoffs of 775 workers mean the latest job cuts equate to around 1% of its workforce.

Why is Nike cutting jobs?

When reached for comment, a Nike spokesperson told Fast Company that the job cuts were part of the steps the company was taking “to strengthen and streamline our operations so we can move faster, operate with greater discipline, and better serve athletes and consumers.”

As part of those steps, Nike said it’s “sharpening our supply chain footprint, accelerating the use of advanced technology and automation, and investing in the skills our teams need for the future.”

The company said its actions to consolidate its footprint will primarily impact its U.S. distribution operations.

“These actions are designed to reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation and to support our path back to long-term, profitable growth, including contributing to improved EBIT (earnings before interest and taxes) margins over time,” the spokesperson added.

Under former Nike CEO John Donahoe, the company moved away from wholesale partners in favor of direct selling, which necessitated a buildup of employees at its distribution centers. But ultimately, Nike’s lackluster sales demand could not support the number of employees at the distribution centers. Nike’s new CEO Elliott Hill has flipped its sales playbook, embracing wholesale partners again, and focusing on cutting costs to increase margins.

How has Nike’s stock price reacted?

As of yesterday’s closing price, Nike shares (NYSE: NKE) were trading at $64.99. In premarket trading this morning, shares are essentially flat.

In other words, investors so far seem to have shrugged off the fact that the layoffs will have an immediate impact on the company’s finances or operations.

After reaching an all-time high of around $180 in 2021, Nike’s share price has steadily declined, falling to as low as the $62 range in March of last year.

Over the past 12 months, Nike’s share price has declined by more than 11%, and over the past five years, the stock’s price has collapsed by more than 50%. Since the new year began, NKE shares have risen about 2%.

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