Adidas is reportedly planning to reduce its workforce in Germany by up to 500 employees. In contrast, its competitor Puma is considering various cost-cutting measures.
The exact number of employees affected by Adidas’s decision has not been officially disclosed. Sources cited by Reuters indicate that Bjoern Gulden, CEO of Adidas, intends to cut some jobs from its team of 5,800 at the headquarters in Herzogenaurach, Germany. Gulden has been pursuing decentralization for some time to foster greater accountability within individual markets, rather than having all responsibilities concentrated at the headquarters.
In January 2024, Gulden acknowledged the challenges the company faced after a tumultuous year marked by controversies, including antisemitic remarks, declining sales, and internal discontent. He recognized the need for a turnaround strategy.
It’s worth noting that despite these challenges, Adidas reported better-than-expected revenues, with sales increasing by 11% in 2024. The company posted operating profits of approximately €1.34 billion.
On the other hand, Puma did not perform as well as anticipated, reporting net profits of €282 million in 2024, which is lower than the €305 million reported in 2023. Puma is actively seeking ways to cut costs and reduce expenditures, as the company is dissatisfied with its profitability and aims to improve in 2025. However, Puma has stated its commitment to maintaining workforce stability, suggesting that it may not pursue global layoffs.
