Nike is cutting 775 jobs at distribution centers in Tennessee and Mississippi.
The company says it’s turning to automation and technology to speed things up and cut costs, especially with shoe sales slowing down.
Most of the layoffs are hitting warehouse and fulfillment workers in the Memphis area and Byhalia, Mississippi.
In a statement to CNBC, Nike said it’s aiming to “reduce complexity” and “build a more responsive, resilient” operation by reshaping how its supply chain works.
Nike didn’t say exactly when the cuts will happen or which buildings will be hit the hardest, but it says this is part of a long-term push to get back to growth.
The company also said it’s putting money into new skills and automation to help its teams prepare for what’s ahead.
The Human Cost: A Trucker Speaks Out
The layoffs have sparked criticism from workers and online commentators, particularly in light of recent economic trends and federal policy decisions.
In a video that has gained traction, a truck driver and political commentator, Josh, criticized the economic impact of tariffs and questioned the choices made by some of the very workers now facing job loss.
“You voted for the guy because you wanted the economy to be good, and then you lost your job,” he said.
He argued that Trump’s tariffs on countries like China, Mexico, and Canada have resulted in higher consumer prices and weakened demand.
In his view, Nike’s decision to automate is directly connected to those economic pressures.
“Nike is dealing with slow shoe sales,” he said. “And it’s the tariffs, stupid.”
He cited a previous example of a Trump-supporting shoe business owner who went bankrupt after tariff costs made it impossible to keep prices competitive.
“Donald Trump, your tariffs are sinking my shoe business,” the business owner said, according to the trucker’s retelling. “Can you please stop with the goddamn tariffs?”
While acknowledging that automation is an inevitable trend, Josh emphasized that the current situation is part of a broader pattern.
“We’ve seen many businesses close in the trucking industry where I’m at,” Josh said.
“Just many, many trucking companies have closed down already. We saw ICE kick in the doors at the Hyundai plant… Yesterday we talked about more Amazon layoffs, and today we are talking about layoffs hitting directly in Tennessee and Mississippi as Nike has announced that they will be laying off, something like 700 employees.”
Not Just Red States
Though the layoffs are concentrated in traditionally red states, the economic consequences go beyond party lines.
Nike’s distribution hub in Memphis serves as a national shipping center, and ripple effects from layoffs can impact local economies, small businesses, and surrounding industries such as trucking and retail.
“Yeah, it’s only 700 people,” Josh said. “700 people who can no longer afford to pay their bills. It’s 700 people who are no longer contributing to their local economy. It creates a sort of ripple effect.”
Some have argued that those who voted for policies that hurt the working class are now facing the consequences.
Still, others point out that these communities are diverse and nuanced. Memphis, for example, leans blue politically, despite being located in a red state.
Automation and Economic Pressures
Nike’s decision to automate more of its operations comes during a time of economic pressure and softening demand.
The company reported a 32% drop in net income in its fiscal second quarter, pointing to tariffs, slowdowns in China, and the high cost of overhauling its business.
“Distribution center jobs are expected to take a hit,” CNBC noted, as artificial intelligence and automation continue to reshape logistics across corporate America. UPS, for example, announced plans last year to cut 48,000 roles, partially due to automation.
A Nike spokesperson said the company is “sharpening our supply chain footprint” and that its current restructuring plan is intended to “move faster” and “better serve athletes and consumers.”
Looking Ahead
Nike has not said how many total jobs it still maintains at its U.S. distribution centers.
The company had up to 1,900 workers at its Memphis site as of 2020, but recent cost-cutting moves, including 1,000 corporate layoffs announced last summer, suggest more changes could be ahead.
For now, workers in Tennessee and Mississippi are left to figure out their next steps.
As automation expands and economic pressure builds, the debate continues over which policies and leaders best support the American worker.