NIKE, Inc. Class B (NKE.US) has launched a new round of automation transformation, laying off 775 people at its distribution center in the United States in order to "streamline" the supply chain.

According to sources, NIKE, Inc. Class B (NKE.US) plans to cut 775 positions at its distribution centers, aiming to streamline supply chain layout and accelerate the application of automation. This round of layoffs is separate from the announcement last summer of cutting 1000 corporate positions. NIKE, Inc. Class B confirmed in a media statement that this layoff will mainly impact its U.S. distribution business, with the goal of reducing complexity, increasing flexibility, and creating a more responsive, resilient, accountable, and efficient operational system. The statement said: "We are taking steps to strengthen and streamline operations in order to act faster, conduct business with more discipline, and better serve athletes and consumers." NIKE, Inc. Class B stated in the declaration, "We are reshaping the supply chain layout, accelerating the application of advanced technology and automation, and investing in the skills needed for the future of the team." NIKE, Inc. Class B CEO Elliott Hill has set the overall goal for this sportswear and footwear giant to return to long-term profit growth. Hill returned to NIKE, Inc. Class B on October 14, 2024, serving as President and CEO. This layoff is a continuation of the "Win Now" transformation strategy implemented by NIKE, Inc. Class B CEO Elliott Hill since taking office. Prior to this, NIKE, Inc. Class B has undergone multiple rounds of organizational restructuring, including cutting approximately 1600 people in early 2024 and minor adjustments to non-business departments at headquarters in August 2025. Analysis believes that the previous excessive tilt towards the "Direct-to-Consumer" (DTC) model led to the rapid expansion of logistics facilities and human capital, and the current strategy is to reshape the balance between wholesale channels and direct business, utilizing artificial intelligence and Siasun Robot & Automation technology to improve the efficiency of existing distribution assets. From a financial perspective, NIKE, Inc. Class B is currently facing a complex market environment. Due to weak sales in the Greater China region and the erosion of market share by competitors in some core product categories, the company's gross margin has continuously declined in the second quarter of the 2026 fiscal year, needing a more competitive cost structure to support its long-term profit growth goals. With industry giants like Amazon.com, Inc. (AMZN.US) and United Parcel Service (UPS.US) increasing investment in warehouse Siasun Robot & Automation, NIKE, Inc. Class B's decision to transition to automation is seen as another typical case of the industry accelerating the trend of technology replacing human labor, reflecting the urgent need for retail giants to seek breakthroughs in the digital transformation deep waters. Since the beginning of 2026, NIKE, Inc. Class B stock has accumulated a 2.1% price increase. Wall Street analysts unanimously give the stock a "buy" rating, while Seeking Alpha analysts are more cautious, giving a "hold" rating.