Core Insights - Adidas plans to cut up to 500 jobs, representing nearly 9% of its 5,800 employees at its Herzogenaurach headquarters, to simplify its business operations [1][2] - The layoffs were announced shortly after Adidas reported better-than-expected preliminary profit results for the holiday quarter, with a 19% sales growth and projected sales of 5.97 billion euros, surpassing analyst expectations of 5.68 billion euros [2] - The company aims to align its operating model with current business realities, indicating that the layoffs are not part of a cost-cutting program but rather a response to changes in the business environment over the past few years [3] Business Performance - Adidas has been restructuring its operations and ended 2024 with sales and profits exceeding both analyst and company expectations [4] - The company has successfully leveraged its classic Samba and Gazelle styles to boost sales, benefiting from a slowdown at its main competitor, Nike [4]
Adidas to cut up to 500 jobs after posting better than expected holiday profits