Adidas' Headquarters Overhaul: Two-Thirds of Jobs Gone
Major Downsizing at Adidas Headquarters in Herzogenaurach: Over Two-Thirds of Employees Affected
In a bold move, prominent sportswear brand Adidas is near completion of major staff reductions at its Herzogenaurach headquarters, as confirmed by CEO Bjørn Gulden during the annual general meeting in Fürth. Gulden flat-out declared, "We're two-thirds of the way through!"
The restructuring initiative has resulted in the potential elimination of up to 500 jobs at the German headquarters. Staff members affected were offered severance packages [1][2][3]. The objective is to streamline operations, eliminate redundancies, and boost efficiency. Indeed, Adidas admitted to having business models with functions that were needlessly duplicated or even tripled.
While the specific reasons for this restructuring drive have not been explicitly stated, Adidas has been grappling with challenges such as increased costs due to U.S. tariffs. Despite these tariff-related risks, the company has maintained its optimistic yearly outlook [3].
Adidas remains optimistic for the future, with forecasted high single-digit currency-neutral sales growth in 2025. The expected operating profit ranges between €1.7 billion and €1.8 billion, demonstrating that the restructuring is a strategic step aimed at maintaining profitability [3].
Footnotes:
[1] Adidas Announces Job Cuts at Herzogenaurach Headquarters — ntv.de, rts
[2] Adidas Faces U.S. Tariff-Driven Cost Increases — Various sources
[3] Adidas Maintains Full-Year Outlook Despite Tariff-Related Risks — Various sources
[4] Completion Status of Adidas Job Cuts — CEO Bjørn Gulden, AGM Fürth (2022)
Community aid might be necessary to support the affected employees during this transition period as up to 500 jobs could be eliminated in the restructuring process at Adidas' headquarters. The aid for the restructuring of firms, such as Adidas, in the industry is crucial to enable businesses to maintain profitability and remain competitive in the face of challenges like increased finance costs due to tariffs.
