Adidas to cut 500 jobs at head office

Adidas CEO Bjoern Gulden plans to axe up to 500 head office roles at the brand's headquarters in Herzogenaurach, a source, who took part in the meeting where the figure was announced, told Reuters yesterday.

The German sportswear retailer currently employs approximately 5,800 people in the town, near Nuremberg in Bavaria, southern Germany.

The news was first reported in German monthly business magazine Manager Magazin.

A spokesperson from the brand, known for its iconic three-stripe motif and collaborations with the likes of Wales Bonner and Yohji Yamamoto, declined to confirm the number but said told TheIndustry.fashion that 'n an ever-changing world, [the business] is too complex because of its current operating model".

They continued: "To set adidas up for long-term success we are now starting to look at how we align our operating model with the reality of how we work. This may have an impact on the organisational structure and number of roles based at our HQ in Herzogenaurach."

"We will now start to work closely with the Works Council to ensure that any changes are handled with the utmost respect and care of all employees."

Gulden, who took over the helm in 2021, has started decentralising the company in recent years and shifting responsibility from headquarters to individual markets. He has repeatedly stressed that the brand must return to growth before it tackles personnel issues.

On Tuesday, the company posted its fourth-quarter figures for 2024, with a "better-than-expected" 11% sales increase and an operating profit of €1.34 billion (£1.13 billion) and revenues growing 24% year-on-year to €5.97 billion (£5 billion).

Excluding Yeezy sales in both years, currency-neutral revenues increased by 18% during the fourth quarter of 2024. The company’s gross margin was up by 5.2% to 49.8%. Operating profit reached €57 million (£48 million), versus an operating loss of €377 million (£318 million) in Q4 2023.

Gulden said at the time: "I am very pleased with the way the fourth quarter and the full year developed for us at Adidas. 19% currency-neutral growth (24% reported) in a quarter that in general was difficult for the trade underlines the strong momentum we currently see for our brand and our products.

"We clearly see that consumers’ and retailers’ interest in our products is growing across both lifestyle and performance. Strong growth across all regions and divisions proves the good job our teams are doing across regions and functions."

The following day, smaller rival brand Puma announced a cost-cutting programme after it missed its 2024 net profit expectations.