Elliott Hill leads Nike turnaround amid cyber attack and workforce adjustments

US sportswear leader Nike has confirmed it is investigating a potential cybersecurity incident following claims by an extortion group that it has leaked a significant volume of internal data. The disclosure coincides with reports that the retailer is reducing its workforce by approximately 775 roles at distribution centres to accommodate increased automation.

Operational restructuring in Tennessee and Mississippi

Nike is moving forward with a consolidation of its US logistics network. The company is laying off roughly 775 workers at distribution hubs located in Tennessee and Mississippi. This decision is part of a strategy to integrate advanced technology and automation into its supply chain to reduce complexity and improve responsiveness.

Management stated that these changes are necessary to build a more resilient operation and return to long-term, profitable growth. The reduction follows a previous round of layoffs in August, which impacted less than one percent of corporate staff.

Ransomware group claims theft of manufacturing data

The hacking collective World Leaks, a rebrand of the former Hunters International ransomware group, alleged on January 26, 2026, that it had published 1.4 terabytes of data stolen from Nike. The dataset reportedly includes over 188,000 files, with samples appearing to focus on internal manufacturing and design workflows rather than customer databases.

Files identified in the leak include directories related to garment making processes, factory training resources, and product lifecycle for menswear and womenswear. In a statement, Nike confirmed the investigation, noting that it takes consumer privacy and data security "very seriously" and is currently assessing the situation.

It remains unclear if the incident has impacted Nike's primary wholesale partners, such as Dick’s Sporting Goods, Macy’s, and JD Sports. While the breach appears to target industrial property and competitive intelligence, experts suggest such a leak could increase the risk of counterfeit production.

Strategic turnaround under Elliott Hill

These developments come as chief executive officer Elliott Hill leads a broader turnaround effort to combat slowing growth and increased competition from smaller sportswear brands. While investors have closely monitored the group’s progress, management has maintained that the restructuring of both corporate and logistics functions is in its early stages.

The shift towards automation in distribution, coupled with the current cybersecurity probe, highlights the dual challenges of technological transition and digital security facing the Oregon-based group.