Nike Announces Workforce Reductions Amid Supply Chain Modernization and Data Breach Probe

Nike US6541061031

The sportswear giant Nike is implementing a significant reduction of 775 positions across its US distribution centers. This strategic move coincides with an internal investigation into a potential corporate data breach, unfolding as Chief Executive Officer Elliott Hill continues to drive a comprehensive turnaround plan for the company.

In a separate development late last January, the company announced a series of executive changes in its critical regional operations:
* Europe, Middle East & Africa (EMEA): César Garcia will assume the role of Vice President and General Manager, succeeding Carl Grebert, who is retiring.
* Greater China: Cathy Sparks is set to take over leadership from Angela Dong, who is departing the organization after a twenty-year tenure.
* Asia-Pacific & Latin America (APLA): Cristin Campbell has been appointed as the interim lead for the region.

Streamlining Operations and Supply Chain

The job cuts are primarily concentrated at warehouse facilities in Tennessee and Mississippi. According to company statements, this decision is a component of a broader initiative to modernize its global supply chain network. Nike aims to "reduce complexity, enhance flexibility, and build a more responsive, resilient, and efficient operation" by streamlining its logistics framework, accelerating the adoption of advanced technology and automation, and investing in future-ready team capabilities.

This recent workforce adjustment follows earlier rounds of cuts:
* In August 2025, the company eliminated fewer than 1% of its corporate roles.
* A broader reduction in February 2024 affected 2% of its global workforce, amounting to over 1,600 positions.

As of May 2025, Nike’s total global headcount stood at approximately 77,800 employees.

Potential Cybersecurity Incident Under Review

Concurrently, Nike is examining reports of a possible data leak. A hacker group has allegedly published corporate information, though the full scope and impact of any potential security breach remain unclear at this stage.

Analyst Perspectives on the Strategy

Market analysts have offered mixed reactions to the company's latest actions. KeyBanc Capital Markets has maintained its 'Overweight' rating on Nike shares but reduced its price target. The firm acknowledges "early signs of stabilization" yet cautions investors that meaningful progress will require time.

David Swartz, an analyst at Morningstar, views the staff reductions as a necessary, if delayed, response to operational realities. "Sales growth over the past two years has been well below the historical norm," Swartz noted. "It is highly likely that Nike overbuilt its warehouse capacity and hired too many people."

Turnaround Efforts Face Pressure

CEO Elliott Hill, who assumed leadership in 2024, is under pressure to reverse a trend of declining revenues and contracting profit margins. His strategic priorities include revitalizing wholesale partnerships, reducing outdated inventory, refocusing on core sports categories, and accelerating product innovation.

The company's financial performance for the second fiscal quarter, reported in December, highlighted the challenges, with profits declining by 32%. Results were weighed down by tariff impacts, restructuring costs, and continued softness in the crucial China market. Investors are awaiting the next quarterly earnings report, scheduled for release in March.