Nike To Reportedly Lay Off 775 Additional Employees

• The new layoffs are in addition to the 1000 corporate jobs cuts announced last summer, the report noted.
• CEO Elliott Hill said in December that the company is in the “middle innings” of a multi-year turnaround after a period marked by leadership changes and excess inventory.
• Late last month, several Nike insiders purchased shares of the company, hiking investor optimism.

Nike Inc. (NKE) is reportedly laying off 775 employees as it ramps up the use of automation.

CNBC reported on Monday, citing people familiar with the matter, that the new layoffs will mostly impact distribution center roles in Tennessee and Mississippi.

The sneaker company operates warehouses in these regions, the report said, while adding that it is unclear how many distribution jobs the company has in total in the U.S.

The new layoffs are in addition to the 1000 corporate jobs cuts announced last summer, the report noted.

CNBC noted that it is unclear how Nike intends to increase automation at its distribution facilities and how many jobs were particularly impacted by the automation initiative. Nike did not respond to Stocktwits’ request for comment at the time of writing.  

Share Purchases And Other Efforts

Late last month, several Nike insiders purchased shares of the company, hiking investor optimism. Tim Cook, Nike’s lead independent director, CEO Elliott Hill, and Bob Swan, who currently serves on Nike’s board and chairs its audit and finance committee, all purchased shares of the company.

The insider buying followed Nike’s latest quarterly results, which beat Wall Street expectations but included a cautious outlook for the holiday quarter. Nike said U.S. tariffs were continuing to pressure costs while slowdown in demand in China also weighed down the company’s earnings.

Hill also said the company is in the “middle innings” of a multi-year turnaround after a period marked by leadership changes and excess inventory.

Nike has also been working to rebuild wholesale relationships after an earlier push toward direct-to-consumer sales, while accelerating product launches in running and performance categories to regain market share.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around NKE shares improved from ‘extremely bearish’ to ‘bearish’ territory over the past 24 hours while message volume increased from ‘extremely low’ to ‘low’ levels.

A Stocktwits user voiced optimism for the automation efforts saving money for the company.

NKE stock has dropped 14% over the past 12 months. 

Also See: Why DID CVM Shares Rally Over 7% Today?

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