Nike Inc. is laying off about 775 workers at distribution centers as the sportswear company integrates automation into its operations, according to a person familiar with the matter.
The consolidation of operations at US distribution centers will impact workers in Tennessee and Mississippi, the person said.
In a statement, Nike said it's “accelerating the use of advanced technology and automation, and investing in the skills our teams need for the future.” The company is looking to “reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation.”
The company also cited efforts to return to “long-term, profitable growth.”
CNBC earlier reported the layoffs.
Nike is looking to rebound following operational missteps and heightened competition, especially for running shoes. The company has made progress under Chief Executive Officer Elliott Hill, but management has said turnaround efforts are still in an early stage.
Last August, Nike said it was laying off less than 1% corporate staff.
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