Nike layoffs hit 775 workers in automation move at distribution facilities

Nike It plans to cut nearly 800 jobs amid a push for automation at the shoe and apparel giant’s distribution centers.

The company is cutting 775 jobs that will primarily impact jobs at the retailer’s distribution centers in Tennessee and Mississippi as the company looks to automate more of its supply chain. It was the news First reported by CNBCciting people familiar with the matter.

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

“We are sharpening ours Suppliers footprint, accelerating the use of advanced technology and automation, and investing in the skills our teams need for the future. The company said that our actions to enhance our operations primarily affect distribution operations in the United States.

Nike announces Caitlin Clark as its newest featured athlete

“These actions are designed to reduce complexity, improve flexibility, build a more responsive, flexible, responsible and efficient operation and support our path back to long-term profitable growth, including contributing to improved EBIT margins over time,” Nike said.

the Layoffs of workers in distribution centers This move in the south comes after similar moves made by Nike in the past two years with the aim of reorganizing its operations to enhance the company’s efficiency and financial results.

Nike is back selling shoes and apparel on Amazon for the first time since 2019

Nike said in August last year that it planned to cut less than 1% of the company’s workforce amid an attempt to turn around its business under… CEO Elliott Hill.

The company previously announced that it would reduce 2% of its workforce, amounting to more than 1,600 workers, in February 2024.

Kim Kardashian teams up with NIKE on new SKIMS brand

Nike is restructuring aspects of its business to regain its edge in athletic footwear and apparel. (Istock)

Under Hill’s leadership, Nike has been investing in its running shoe and athletic shoe lines to regain ground it lost to competitors in those segments.

Nike reported a decline in gross margins for the second straight quarter in December Weak sales in China Efforts to recalibrate its product mix continued to present challenges for the struggling sportswear giant.

The company’s stock closed Monday’s trading session at $64.99 per share, up 2% year to date.

Get FOX Business on the go by clicking here

Reuters contributed to this report.