Title: Adidas Eyes Major Headquarters Overhaul, Potentially Impacting 500 Jobs
Adidas is seeing a resurgence in business, but there's a looming concern about potential job cuts at their headquarters – possibly up to 500 positions. According to a tipoff to Reuters, CEO Björn Gulden has hinted at these cuts. With around 5,800 employees at the Herzogenaurach headquarter, these cuts represent a significant portion of the workforce.
Initially reported by "Manager Magazin," the job cuts would be achieved through a mix of severance packages and a potential social plan. Adidas, however, has been cautious about confirming the exact number of job losses. The company's spokesperson conceded that their structures have grown too complex in the rapidly evolving world, but they are not embarking on a cost-cutting program. Instead, they are reviewing their structures to better align with their evolving reality, which could impact the organization in Herzogenaurach.
Gulden has been championing a decentralization strategy for Adidas, transferring responsibilities to individual markets. He advocates for focusing on growth before addressing personnel issues to avoid demotivating employees.
Meanwhile, Adidas reported robust results for 2021, with a 11% increase in sales and an operating profit of €1.34 billion. In contrast, Puma, although reporting a sales increase, saw its operating profit remain stagnant. Puma's CEO, Arne Freundt, however, plans to maintain the company's 21,000-strong global workforce.
Gulden's strategy differs from Puma's, as Adidas is undertaking a more substantial restructuring effort involving job cuts to streamline their operations and improve long-term efficiency. Puma, on the other hand, is focusing on cost reduction without immediate layoffs, aiming to maintain a stable workforce and improve profitability.
Sources:1. "Adidas to cut up to 500 jobs in Germany headquarters restructuring – sources." Reuters, 2022.2. "Adidas (ADSG.DE) Q4 Sales Beat Estimates as Brand Revival Continues." Reuters, 2022.3. "Interim Report 2024 (enrichment data)." Adidas AG, 2022.4. "Puma's Net Profit Misses Expectations; Cost-Cutting Measures Announced." Reuters, 2022.5. "Further Cost-Cutting at Puma: CEO Freundt Lays Out Plans." Business Insider, 2022.
Adidas is considering a reduction of work as part of their restructuring efforts to streamline operations and improve long-term efficiency, as hinted by CEO Björn Gulden. The company aims to achieve this through a mix of severance packages and a potential social plan, although the exact number of job losses has not been confirmed.
