Adidas suddenly announces major layoffs

Recently, multiple media outlets reported that the footwear giant Adidas plans to lay off employees at its headquarters in Herzogenaurach, Germany. Currently, Adidas has refused to confirm any figures or provide further details.

In a statement sent to FN, an Adidas representative pointed out that this layoff is not part of a cost-saving plan, but rather aimed at "reducing complexity and ensuring sustainable success in the future." The representative stated, "Over the past two years, we have created strong momentum for our business, brands, and products, and have proven that our approach to serving consumers is effective. However, we have also found that our current operating model is too complex in this rapidly changing world. To achieve long-term success for Adidas, we are now beginning to consider how to align our operating model with the way we actually work. This may impact the organizational structure and number of positions at our headquarters in Herzogenaurach."

Adidas currently refuses to confirm any numbers or further details, as the company has just begun evaluating its organizational structure and determining what structural changes are needed. However, media reports estimate that the German headquarters could lay off up to 500 employees, which has approximately 5,800 staff members in the town. The spokesperson added that Adidas is working closely with the company's union to ensure that all employees are treated with the utmost respect and care.

On the same day that Adidas announced the layoffs, its competitor Puma also announced a new cost-saving plan. Puma CEO Arne Freundt described this initiative, named "nextlevel," as a comprehensive efficiency plan aimed at optimizing costs and improving operations.

Adidas has reported its preliminary results for the fourth quarter of fiscal year 2024, showing strong performance. Adidas' fourth-quarter revenue grew by 24% to 5.97 billion euros, up from 4.81 billion euros in the same period of the previous year. For the entire fiscal year, Adidas stated that revenue is expected to grow by 11% to 23.68 billion euros, compared to 21.43 billion euros in fiscal year 2023.