Adidas is reportedly preparing to trim its workforce in Germany by up to 500 employees. Competitor Puma, meanwhile, is considering cost-cutting measures.
The exact number of employees to be impacted by the move has not been revealed officially by Adidas.
Reuters reports sources as revealing that Bjoern Gulden, CEO, Adidas intends to cut some jobs from its 5,800-strong team at the headquarters in Herzogenaurach, Germany. Gulden has been working towards decentralisation for a while now so that there is more accountability in the individual markets, instead of the headquarters bearing all the responsibility.
In January 2024, Gulden had acknowledged the challenges after a tumultuous year marked by controversy surrounding antisemitic remarks, declining sales, and internal discontent, and recognised the need for a turnaround.
It is pertinent to mention here that the sportswear firm has reported revenues better than expected with sales having increased by 11 per cent in 2024. The company posted operating profits of about €1.34 billion.
Puma, on the other hand, did not do as well as expected reporting net profits in 2024 (€282 million) lower than that of 2023 (€305 million). Puma has been trying to cut costs and bring down expenditure. The company is reportedly dissatisfied with the profitability and is aiming to do better in 2025. However, Puma also maintains that it is keen to focus on the stability of the workforce, and therefore, may not go for global layoffs.
