German sportswear giant Adidas has announced plans to cut up to 500 jobs as it continues efforts to streamline operations and move past its turbulent split with US rapper Kanye West, now known as Ye. The company confirmed the layoffs on Wednesday, stating that they would primarily impact staff at its Herzogenaurach headquarters and would be carried out voluntarily.
Aiming for Efficiency
The job cuts are part of a broader strategy to improve efficiency and profitability, Adidas CEO Bjorn Gulden told reporters. Gulden took charge in 2023 following the company’s controversial breakup with West, which came after the rapper made anti-Semitic remarks. The fallout led Adidas to sever ties with Ye and halt production of the Yeezy brand, one of its most lucrative product lines.
To mitigate financial losses, Adidas began selling off excess Yeezy stock. The company confirmed on Wednesday that it had sold its last remaining pair of Yeezy trainers in late 2024, officially closing the chapter on its partnership with the artist.
Adidas Bounces Back
While the loss of the Yeezy collaboration contributed to a financial hit in 2023, Adidas has since staged a recovery. The company reported a net profit of approximately R17 billion (converted from $882
R16,283.45 million) in 2024 and expressed optimism about maintaining this positive momentum into 2025.
Despite the absence of major sporting events next year that typically drive sales, Adidas anticipates “high-single-digit” growth in overall revenue for 2025.
Potential Trade Challenges
However, the company faces potential hurdles, particularly in the form of US trade policies. President Donald Trump has threatened to impose tariffs on key trading partners, including China, which could impact Adidas’s supply chain and pricing strategies.
“We don’t know what will happen with tariffs in the United States,” Gulden acknowledged, highlighting the uncertainty surrounding international trade relations.
As Adidas moves forward, its focus remains on boosting efficiency, sustaining financial growth, and navigating potential economic challenges while leaving behind the controversies of the past.
