Aiming to simplify its operating model, Adidas is working on a strategy that will impact its organizational structure and likely result in an unspecified reduction of jobs at its Herzogenaurach, Germany headquarters.
Reports out of the US pegged the potential layoffs at nearly 9 percent of the group’s 5,800 global employees or about 500 jobs. Still, Adidas declined to offer any specifics, citing the early stages of the overall process.
“We cannot confirm any figures or details,” said Adidas spokesperson Claudia Lange, Head of Media Relations, when SGI Europe got a hold of her. ”We are still at the very beginning of this process. Structural changes are only now being worked out. It is, therefore, not yet possible to say what the concrete impact of the changes will be.
At the moment, several companies in the business struggle with profitability. VF Corp., for instance, is about to cut jobs too.
Lange continued:
“It is also important to note that this is not a cost-cutting program, but we are adapting our structures to reflect how we have been working for two years,” commented Lange. “By doing so, we will reduce complexity and ensure sustainable success in the future.”
News of the potential staff cuts at Adidas leaked out shortly after the company reported better-than-forecast preliminary results for Q4 that included 19 percent sales growth and an annual revenue projection of €5.97 billion.
