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The chief executive officer Bjoern Gulden of Adidas AG will cut up to 500 roles based at its headquarters in Herzogenaurach.
An Adidas spokeswoman said the reason behind the company’s job cuts has to do with its current structure which she described as “too complex in a constantly changing world,” according to Reuters.
Gulden’s move reflects his talks about decentralizing the company and shifting responsibility from headquarters to individual markets, according to the report.
The world’s second-largest sportswear maker employs nearly 5,800 employees in Herzogenaurach.
Adidas AG reported increased revenues by 24%, nearly $6.2 million in Q4 2024.
Last year, Adidas AG headquarters and offices were raided by authorities as a result of a five-year tax investigation.
Adidas enters 2025 after the dust has settled from two contentious partnerships with celebrities.
In 2024, Adidas decided to continue selling Yeezy products to make up for its $1.3 billion loss after ending its partnership with Kanye West.
Adidas chose to sell the remaining Yeezy stock for “at least” the cost of making the goods after the demand for Yeezy didn’t deter despite being canceled for alleged anti-Semitic remarks.
In 2023, Adidas parted ways with Beyonce after very disappointing Ivy Park merchandise sales from 2022. The company had projected $250 million in sales.
