Memphis, January 27, 2026
Nike Inc. has announced plans to lay off approximately 775 employees across its distribution centers in Tennessee and Mississippi. This move aims to streamline operations and enhance efficiency through increased automation. The layoffs will primarily affect distribution roles as part of a strategy to improve flexibility and build a more resilient supply chain. While the specific facilities affected have not been disclosed, this decision is expected to have a significant impact on the local workforce, particularly in Memphis, where Nike is a major employer.
Memphis, Tennessee
Nike Inc. has announced plans to lay off approximately 775 employees across its distribution centers in Tennessee and Mississippi. This decision is part of the company’s strategy to streamline operations and enhance efficiency through increased automation.
The layoffs will primarily affect distribution center roles in Tennessee and Mississippi, where Nike operates large warehouses. The company stated that these actions are designed to reduce complexity, improve flexibility, and build a more responsive and resilient supply chain. Nike emphasized that the consolidation of its U.S. distribution center operations is expected to impact approximately 775 employees across Tennessee and Mississippi. The company did not provide a timeline for the layoffs or specify which facilities would be affected.
This move follows a previous round of layoffs in August 2025, which impacted less than 1% of Nike’s corporate staff. The company has been investing in its running shoe and sneaker lines to reclaim lost ground in these segments. Nike had reported a drop in gross margins for the second consecutive quarter in December, as poor sales in China and efforts to reset its product mix continued to affect the struggling sportswear giant.
As of May 2025, Nike employed 77,800 people globally, with eight distribution hubs in the U.S., five of which are located in Memphis. The company has not specified how many employees at the Memphis facility will be impacted by the latest layoffs.
Understanding the Layoff Situation
The recent announcement by Nike regarding the layoffs is a significant development for the local economy in Memphis and surrounding areas. As one of the largest employers in Memphis, the company’s decision to lay off employees highlights the ongoing transformations in the retail and distribution sectors. This maneuver appears to be aimed at aligning with modern operational strategies that favor automation and efficiency.
Impact on Local Employment
The number of employees affected in Memphis specifically remains undisclosed. Nevertheless, it is important to recognize that Nike employs about 6,000 workers in the city, making it a crucial part of the local workforce. The potential impact of these layoffs could ripple through the community, affecting households and supporting local businesses.
Nike’s Strategy for Efficiency
Nike’s rationale behind the layoffs is rooted in a larger business strategy to enhance operational efficiency through automation. The company is focusing on simplifying its supply chain to respond better to market demands while dealing with challenges, such as fluctuating sales figures and external market pressures. Such strategic shifts reflect a trend where companies increasingly embrace technology to stay competitive in an ever-changing economy.
Previous Layoffs and Company Direction
This latest round of job cuts is not an isolated incident; they build upon previous layoffs announced in August 2025 that had a minimal impact on corporate staff. In light of the evolving sportswear market, Nike appears to be committed to revitalizing its most profitable lines, especially in running shoes and sneakers, seeking to regain its previously held market share.
Memphis as a Distribution Hub
With five distribution centers strategically located in Memphis, the city is integral to Nike’s logistics framework in the United States. This facilitates efficient shipping and operations, but also places Memphis at the center of potential economic disruptions stemming from cuts in workforce. Local leaders and entrepreneurs might need to consider how these changes could inspire a review of workforce development strategies in the area.
Encouraging Economic Adaptation
While layoffs are inherently challenging for any workforce, they can also signal opportunities for economic adaptation. The emphasis on automation and operational efficiency reflects a broader trend of innovation within businesses, including those located in Memphis. Community stakeholders, including local entrepreneurs, have a role in fostering an environment that encourages resilience and adaptability, which is essential for economic growth and stability.
Conclusion
Nike’s planned layoffs represent a significant shift in its operational strategy, which could profoundly affect local employment in Memphis and surrounding regions. While this news may raise concerns about job security, it also presents an opportunity for community and business leaders to rethink approaches to employment, technology integration, and economic growth. As Memphis continues to navigate these changes, supporting local businesses and fostering innovation is crucial to ensuring a robust economic future.
Frequently Asked Questions (FAQ)
What is Nike’s recent announcement regarding layoffs?
Nike has announced plans to lay off approximately 775 employees across its distribution centers in Tennessee and Mississippi as part of its strategy to streamline operations and enhance efficiency through increased automation.
Which locations are affected by the layoffs?
The layoffs will primarily affect distribution center roles in Tennessee and Mississippi, where Nike operates large warehouses. The company has not specified which facilities will be impacted or provided a timeline for the layoffs.
How many employees does Nike have globally?
As of May 2025, Nike employed 77,800 people globally, with eight distribution hubs in the U.S., five of which are located in Memphis.
Has Nike made similar layoffs in the past?
Yes, Nike previously announced a round of layoffs in August 2025, impacting less than 1% of its corporate staff. The company has been investing in its running shoe and sneaker lines to reclaim lost ground in these segments.
What is Nike’s strategy behind these layoffs?
The layoffs are part of Nike’s strategy to reduce complexity, improve flexibility, and build a more responsive and resilient supply chain. The company aims to strengthen and streamline its operations to better serve athletes and consumers.
How does this impact Nike’s operations in Memphis?
The company has not specified how many employees at the Memphis facility will be impacted by the latest layoffs. As of May 2025, Nike employed 6,000 workers in Memphis, making it the city’s third-largest employer.
| Feature | Details |
|---|---|
| Layoff Announcement | Nike plans to lay off approximately 775 employees across distribution centers in Tennessee and Mississippi to streamline operations and enhance efficiency through increased automation. |
| Impact on Memphis | The company has not specified how many employees at the Memphis facility will be impacted. As of May 2025, Nike employed 6,000 workers in Memphis, making it the city’s third-largest employer. |
| Previous Layoffs | In August 2025, Nike announced a round of layoffs impacting less than 1% of its corporate staff. The company has been investing in its running shoe and sneaker lines to reclaim lost ground in these segments. |
| Company Strategy | The layoffs are part of Nike’s strategy to reduce complexity, improve flexibility, and build a more responsive and resilient supply chain. The company aims to strengthen and streamline its operations to better serve athletes and consumers. |
| Global Workforce | As of May 2025, Nike employed 77,800 people globally, with eight distribution hubs in the U.S., five of which are located in Memphis. |
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Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
