Adidas Embarks on Restructuring Effort, Eyes Up to 500 Job Cuts
In a bid to streamline its operations and get back on a growth track, Adidas is planning to reduce its workforce at its German headquarters in Herzogenaurach. According to a source familiar with the matter, the sportswear giant is considering cutting up to 500 jobs, which would account for roughly 9% of its 5,800-strong workforce in the Bavarian town.
Simplifying the Company Structure
Adidas CEO Bjoern Gulden has been working to decentralize the company and shift responsibility from headquarters to individual markets. This move is seen as a crucial step in adapting to the rapidly changing business landscape. While the company declined to confirm the exact number of job cuts, a spokeswoman acknowledged that the current structure is “too complex” and in need of simplification.
Positive Preliminary Figures
The news of the restructuring effort comes on the heels of Adidas’ better-than-expected preliminary figures for 2024. The company reported an 11% increase in sales and an operating profit of 1.34 billion euros, beating market expectations. This positive performance is likely to provide a much-needed boost to the company’s efforts to get back on track.
Industry-Wide Cost-Cutting Trend
Adidas is not alone in its cost-cutting efforts. Its smaller rival, Puma, announced a similar programme just a day after Adidas presented its preliminary figures. Puma’s move was prompted by its 2024 net profit missing expectations, highlighting the intense competition in the sportswear industry.
A New Era for Adidas
As Adidas navigates this period of transformation, CEO Bjoern Gulden remains committed to his vision of a leaner, more agile company. With a renewed focus on growth and a simplified structure, Adidas is poised to emerge stronger and more competitive in the years to come.
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