German sportswear giants Adidas and Puma have each introduced they’re looking for to scale back prices, together with via doable job cuts, as they eye boosting income – with shares of Puma plunging on Thursday after disappointing ends in the final fiscal 12 months.
Adidas mentioned it wished to make sure “long-term success” and had “begun examining how we can adapt our business’s structures to the reality of our work.”
This may affect the variety of positions on the group’s headquarters in Herzogenaurach, southern Germany, a spokesperson informed Agence France-Presse (AFP) on Thursday, with out giving additional particulars.
The adjustments can be carried out “with the greatest respect and care for employees,” he added.
German news outlet Manager Magazin mentioned the plans may have an effect on as much as 500 staff and mirrored CEO Bjorn Gulden’s need to simplify Adidas.
The news comes because the group seeks to place a tough few years behind it following the furor surrounding musician and entrepreneur Kanye West, now recognized formally as Ye.
Adidas had designed Yeezy trainers in collaboration with West however ended the partnership after his anti-Semitic feedback sparked outrage. The agency then wrote off a portion of the inventory and bought the remainder at a reduction.
Preliminary outcomes launched this week confirmed that Adidas’ working income jumped fivefold final 12 months after earnings took successful in 2023 because of the fallout from the West disaster.
But Gulden mentioned Adidas nonetheless wanted to do higher and the corporate is concentrating on revenue margins of 10%, which is up from 5.6% final 12 months.
Puma, Adidas’s smaller rival, mentioned Wednesday that it was additionally aiming to chop prices, together with via “personnel expenses” – suggesting job cuts may very well be on the desk – because it launched disappointing outcomes.
Its shares have been down as a lot as 18% on Thursday morning after internet revenue for final 12 months fell to 282 million euros ($293 million) from 305 million the 12 months earlier than.
Source: www.dailysabah.com