Nike to Cut 775 U.S. Jobs as It Pushes AI and Profit Turnaround

Nike is set to fire 775 employees in the U.S. According to a Reuters report, the company is laying off employees to increase profits and invest more in AI technology. It laid off 2% of its workforce (over 1,600 jobs) in February 2024 and another 1% in August (lastly). These were part of a turnaround plan under its new CEO in 2024. 

This time around, the profits are the dominating reason. Reports indicate that Distribution workers will be affected the most by these layoffs. At the same time, the company has been struggling lately. So, what does the company say? Is Nike struggling with something else? For all that, learn more.

Who Is Affected the Most in Nike’s Layoffs in 2026?

Most jobs will be cut from the distribution sector (warehouse workers who store and ship Nike products). These layoffs will mainly occur in Nike's large warehouses in Tennessee and Mississippi. Moreover, this piece of news was confirmed by Nike itself. 

Is Nike Already Struggling?

Yes! Nike's business hasn't been that great lately. It has lost a good market share as customers are choosing rival brands instead. Sales have dropped significantly (by the end of May 2025) by $44.7 billion. There's a 14% drop in their direct sales and a whopping 17%–21% drop in Greater China sales. This contrasts well with Nike, which has too many warehouses and employees. It's also struggling with its poor product mix and a recent data breach (reported on January 26, 2026). 

What Did Nike Say About the 775 Employees in the U.S.?

According to Nike, it is focusing on strengthening and streamlining its operations. Therefore, the company can move faster with stable profits (again) and work with more discipline. The lay-offs (in its overstaffed warehouses in the U.S.) will create a momentum:

• Reduce complexity
• Improve flexibility
• Support long-term profitable growth

Final Thoughts...

Nike wants to become profitable again, and so it's approaching the traditional layoffs. The news was first reported by CNBC and later by Reuters, which reported that there could be 775 job cuts. These will come from areas like Tennessee and Mississippi, where there is overstaffing. For more updates on the same, keep in touch. 

Nike Slashes Tech Jobs as America’s Largest Shoe Giant Streamlines for the Future

According to reports, Nike, the biggest footwear manufacturer in America, is cutting employees in its technology branch. The corporation has acknowledged the layoffs, according to Reuters, but it has not yet revealed how many staff would be affected. The corporation disclosed that the layoffs are a component of a larger

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