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Behind the Headlines: Nike’s 775 Layoffs & The Strategic Pivot
Nike recently announced the elimination of 775 roles at distribution centers in Tennessee and Mississippi. While the company cites "accelerating automation" as the driver, Charles Fallon and David Beaudet argue that this is a classic case of a strategy shift—specifically, a retreat from an aggressive direct-to-consumer (DTC) model back toward wholesale distribution.
In this episode, we explore:
How Nike’s distribution centers were built for a "fantasy" of consumer behavior that didn't materialize.
The dangers of confusing a vision with a manifestation before demand exists.
Why automation is being used as a convenient "spin" for broader business losses.
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By LIDD Supply ChainNike recently announced the elimination of 775 roles at distribution centers in Tennessee and Mississippi. While the company cites "accelerating automation" as the driver, Charles Fallon and David Beaudet argue that this is a classic case of a strategy shift—specifically, a retreat from an aggressive direct-to-consumer (DTC) model back toward wholesale distribution.
In this episode, we explore:
How Nike’s distribution centers were built for a "fantasy" of consumer behavior that didn't materialize.
The dangers of confusing a vision with a manifestation before demand exists.
Why automation is being used as a convenient "spin" for broader business losses.