Adidas's Major Strides in Job Cuts at Headquarters
Adidas nears completion of job reduction at its headquarters.
Gossip Around Town Twitt er's Wutwhapp Email Maill Printer Copy Link Adidas is Almost Done with Staff Cuts, Claims CEO Bjørn Gulden.
In a recent shake-up, Adidas is reportedly two-thirds finished with the job cuts it announced previously. The big boss himself, Bjørn Gulden, made the revelation at the company's annual general meeting in Fürth on Thursday.
Adidas had previously hinted at trimming down the workforce at its German headquarters in Herzogenaurach, with a potential of slashing up to 500 jobs. Those affected have been offered severance packages as part of the plan to remove excess baggage and boost efficiency.
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Why the Chop?
- Streamlining Operations: The primary objective behind these cuts is to strengthen operational efficiency by doing away with unnecessary duplicate business functions. As mentioned by Bjørn Gulden, the company had been caught up in functions that were at times doubled or tripled[3].
- Staying Ahead in the Game: These moves are part of a broader strategy being adopted by players in the sportswear industry. Companies worldwide are optimizing their models and honing their operations to stay competitive as the global sportswear market continues to grow[1].
- Overall Improvement: Adidas is going through a transformation under the leadership of Bjørn Gulden, which includes restructuring efforts aimed at boosting the company's overall performance[3].
In light of Adidas's restructuring efforts, the company is carefully reviewing and amending its community policy and employment policy to align with the streamlined operations. Moreover, the financial ramifications of these job cuts will be closely monitored to ensure the long-term stability of the business.
