Nike Cuts Jobs as Turnaround Drives Warehouse Automation
Fourth time’s the charm — or in Nike’s case, the fourth straight year of layoffs. After trimming 1K corporate jobs last summer, the shoemaker decided to just do it again with 775 warehouse redundancies, as it accelerates inventory “automation.” The move is part of CEO Elliott Hill’s broader turnaround strategy to achieve “long-term, profitable growth” once again.
- Nike’s layoffs reflect an efficiency push after its unsuccessful direct-to-consumer strategy bloated distribution, leaving centers without the volume to justify staffing levels.
- Despite the pain, quarterly sales beat expectations twice since Hill called the bottom — with wholesale partnerships and the running category leading the charge.
Marathon ahead: Hill himself admits there’s “significant work ahead,” and the headwinds prove it. Annual tariff costs jumped from $1B to $1.5B in Q1, pressuring margins while China sales declined for five straight quarters. Additionally, competitive threats are mounting as On Running expands into apparel territory and Adidas gains ground. Hill says the turnaround “won’t be perfectly linear,” but Wall Street is skeptical as remains down 16% over the past year.
