Nike layoffs hit 775 workers in automation move at distribution facilities

nike plans to cut nearly 800 jobs as the footwear and apparel giant moves to automate its distribution centers.

The company is cutting 775 jobs, primarily affecting jobs at the retailer’s distribution centers in Tennessee and Mississippi, as it aims to further automate its supply chain. The news is First reported by CNBCsaid a person familiar with the matter.

A Nike spokesperson told FOX Business: “To strengthen our Win Now efforts, we are taking steps to strengthen and streamline our operations so that we can move faster, operate with more discipline and better serve our athletes and consumers.”

“We are sharpening supply chain Expand your footprint, accelerate your use of advanced technology and automation, and invest in the skills your teams need for the future. “Our business integration efforts primarily impact our U.S. distribution operations,” the company said.

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Nike plans to cut jobs at its distribution centers in Tennessee and Mississippi. (David Paul Morris/Bloomberg via Getty Images)

“These actions are aimed at reducing complexity, increasing flexibility and creating a more responsive, resilient, responsible and efficient operation, and are intended to support our return to long-term, profitable growth, including contributing to improved EBIT margins over time,” Nike said in a statement.

of Reduction in personnel at distribution centers In the South, it comes after Nike made similar moves over the past two years aimed at restructuring its business to improve its efficiency and financial results.

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Nike announced in August last year that it planned to cut less than 1% of its workforce in an effort to rebuild its business under the Prime Minister’s guidance. CEO Elliott Hill.

The company previously announced that it would cut 2% of its workforce, or more than 1,600 people, in February 2024.

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Nike is restructuring many aspects of its business to regain its dominance in footwear and sportswear. (eye stock)

Under Mr. Hill’s leadership, Nike has invested in its running shoe and sneaker lines in an effort to regain ground lost to competitors in those segments.

Nike reported in December that gross profit margins had declined for the second consecutive quarter. Sluggish sales in China Efforts to reposition its product mix continued to be a challenge for the struggling sportswear giant.

The company’s stock closed Monday’s trading at $64.99 per share, up 2% since the beginning of the year.

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Reuters contributed to this report.