Adidas confirms 500 job cuts as it lowers profit forecast
Adidas will axe up to 500 jobs at its Herzogenaurach headquarters as part of a broader strategy to reduce operational complexity and lower costs.
Adidas will axe up to 500 jobs at its Herzogenaurach headquarters as part of a broader strategy to reduce operational complexity and lower costs.
The German sportswear giant, which has around 62,000 employees worldwide, said the decision follows a strategic review of its operations.
According to CEO Björn Gulden, the company identified these roles as “obsolete” during the restructure designed to streamline its headquarters.
Amid the restructuring, Adidas has lowered its profit forecast for 2025, with Gulden warning that the company’s operating profit will be significantly below analysts’ expectations.
The business now expects operating profit for the year to come in at between €1.7bn and €1.8bn (£1.4bn and £1.5bn), down from the €2.1bn (£1.8bn) analysts had predicted.
“We have to simplify our processes and reduce complexity within the company,” said Gulden.
“Our focus now is on decentralising decision-making and empowering local markets to act more quickly and efficiently.”
-
Related Story
-
This move comes after Adidas’ tumultuous 2023, when it experienced its first annual loss in over 30 years, largely due to the fallout from severing ties with rapper Ye (formerly Kanye West) and the collapse of its highly profitable Yeezy collaboration.
Despite the challenges, the brand has bounced back in recent months, seeing growth in key product lines such as the Samba and Gazelle trainers.
However, Adidas is now facing new challenges in 2025, as it navigates macroeconomic uncertainty and increased costs linked to US tariffs on imports.
Gulden noted that the company is aiming to reduce its reliance on centralised decision-making, giving regional managers more autonomy to adapt to the changing landscape.
Looking ahead, Adidas remains confident in its long-term growth prospects, despite a slowdown in its sales forecast – now targeting 10% sales growth in 2025, down from 12% in 2024.
Click here to sign up to Retail Gazette‘s free daily email newsletter
