US sportswear market leader Nike is currently investigating a possible cybersecurity incident. The background is allegations from a blackmail group that claims to have published a significant volume of internal company data. The revelation coincides with reports that Nike is reducing its distribution center workforce by around 775 positions to increase automation in logistics.
Operational restructuring in Tennessee and Mississippi
Nike is actively consolidating its US logistics network. Around 775 employees in distribution centers in Tennessee and Mississippi will lose their jobs. The measure is part of a strategy to integrate advanced technologies and automation in the supply chain. The aim is to reduce complexity, increase efficiency and improve responsiveness to market changes.
The company says these changes are necessary to build a more resilient operation and ensure long-term, profitable growth. The current reduction follows an earlier round of layoffs in August that affected less than one percent of the total workforce. This shows that Nike is consistently adapting its logistics strategy to new requirements – at the same time as the ongoing cybersecurity incident.
Ransomware group is said to have stolen production data
The operational restructuring coincides with reports of a possible data leak. The hacking group World Leaks, a successor to the former ransomware group Hunters International, said on January 26, 2026 that it had released 1.4 terabytes of Nike data. The data set reportedly includes over 188,000 files, primarily focused on internal production and design processes and not involving customer databases.
The leaked information includes, but is not limited to, directories of clothing manufacturing processes, factory training materials, and product life cycles for men’s and women’s fashion. Nike confirmed that it was investigating the incident and emphasized that protecting consumer privacy and data security was taken “very seriously.”
It is currently unclear whether key wholesale partners, including Dick’s Sporting Goods, Macy’s and JD Sports, will be affected. Experts warn that despite the focus on intellectual property, the leak could increase the risk of counterfeiting. The situation shows the double challenge for Nike: operational change and digital security must be managed at the same time.
Strategic turnaround under CEO Elliott Hill
These developments come as CEO Elliott Hill is leading a comprehensive turnaround strategy. It is intended to accelerate slowing growth and fend off competition from smaller sportswear brands. According to management, the restructuring of the corporate and logistics functions is still at an early stage.
The combination of automation measures and ongoing cybersecurity investigation highlights the complex challenges currently facing the Oregon-based group. Both technological change and digital security must be balanced to keep Nike resilient and competitive in the long term.
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