Large job cuts at Adidas: Hundreds of employees lose jobs

Despite a difficult economic environment, Adidas expects further growth this year, which, however, should weaken itself compared to 2024.

Adidas Will in the Group headquarters in the German Herzogenaurach Spread up to 500 jobs. “We have to take out up to 500 jobs because they generate complexity – not the people -” said, “said CEO Björn Gulden on Wednesday at the balance sheet press conference. For the first time, he confirmed the dismantling plans that were leaked through in January.

“We have to reduce complexity, but simplification is the most difficult ever. We had to break many of our own rules.” Adidas has to make decisions of decentralized. One could not determine from Herzogenaurach what is selling well in countries like the USA or China, said Gulden.

Weakness

Despite a difficult economic environment, Adidas expects further growth this year, which, however, should weaken itself compared to 2024. For example, sales in 2025 will increase in the high single -digit percentage range, the company said in Herzogenaurach on Wednesday. Sales should grow by at least 10 percent.

There are no more sales with Yeezy products after the remaining stocks from the terminated cooperation with the controversial rapper Kanye West were sold last year. In 2024, Adidas had redeemed around 650 million euros again with the products, and sales increased a total of 12 percent to EUR 23.7 billion.

824 million euros profit

The operating result stunned, the operational return on sales rapidly to 5.6 (1.3) percent. The bottom line was a profit from the continued business of 824 million euros; In the previous year, Adidas had written a loss of 58 million euros. After two lean years, the dividend is to be almost tripled to EUR 2.00 at 70 cents.

The profitability should continue to improve. Adidas assumes an increase in the operating result to 1.7 to 1.8 billion euros, after EUR 1.3 billion in the previous year. Investments for marketing and sales are to be increased. “I think we are very well positioned for 2025,” commented CEO Björn Gulden. In addition, the company will make “further progress” on the way to an operational margin of ten percent. In 2024, Adidas improved the margin by 4.4 percentage points to 5.6 percent. The Germans had already submitted preliminary figures for the past year at the end of January.