Adidas to Cut Up to 500 Jobs Amid Efforts to Streamline Operations
Layoffs at Headquarters in Herzogenaurach, Germany, to Impact Nearly 9% of Workforce
Adidas is set to reduce its workforce by as many as 500 positions as part of an effort to simplify its business operations, a source familiar with the matter confirmed to CNBC on Thursday.
The job cuts will primarily affect employees at Adidas’ headquarters in Herzogenaurach, Germany, where the company employs approximately 5,800 people. While the exact number of affected roles has yet to be finalized, the company is expected to determine the final figure as the process advances.
News of the layoffs was shared with employees on Wednesday, just a day after Adidas announced better-than-expected preliminary profits for the holiday quarter, alongside a 19% surge in sales. The company projects revenue of 5.97 billion euros, surpassing analysts’ expectations of 5.68 billion euros, according to LSEG data.
In a statement to CNBC, an Adidas spokesperson explained that the company’s current operating structure had become "too complex," necessitating the upcoming changes.
“To position Adidas for long-term success, we are evaluating how to align our operating model with our current way of working. This may impact the organizational structure and the number of roles at our headquarters in Herzogenaurach,” the spokesperson said. “We will collaborate closely with the Works Council to ensure that any changes are managed with the utmost respect and care for all employees.”
According to Adidas, the layoffs are not part of a broader cost-cutting initiative but rather an effort to refine and adapt the company’s structure to recent business evolutions.
The restructuring comes as Adidas wrapped up 2024 on a strong note, with sales and profits exceeding both internal and analyst forecasts. The company’s resurgence has been fueled by strong demand for its classic Samba and Gazelle sneaker lines, as well as a slowdown at its biggest competitor, Nike.