On Wednesday, the prominent German sportswear corporation Adidas declared its intention to eliminate up to 500 positions as part of its continuing revitalization strategies, following a tumultuous separation from the American musician Kanye West.
The impending workforce reductions, designed to enhance operational efficiency, will predominantly impact personnel at Adidas’ headquarters located in Herzogenaurach and will be executed on a voluntary basis, as stated by CEO Bjorn Gulden to members of the press.
Gulden assumed the role of CEO in 2023 in the wake of the company’s contentious relationship with West—who has since adopted the name Ye—subsequent to the rapper’s dissemination of anti-Semitic statements.
In the aftermath of the termination of their partnership, Adidas commenced the liquidation of surplus inventory of Yeezy merchandise that had been conceived in collaboration with West.
The corporation confirmed on Wednesday that it had disposed of its final remaining pair of Yeezy-branded footwear in the concluding quarter of 2024.
The departure of West and the cessation of the profitable Yeezy line precipitated a financial decline for Adidas in 2023; however, the company has since experienced a resurgence.
In 2024, Adidas reported a net profit amounting to €824 million ($882 million) and conveyed a sense of optimism regarding the sustenance of this favorable trajectory into 2025.
The organization anticipates an overall sales increase in 2025 to occur within the “high single-digit range,” notwithstanding the lack of significant sporting events that typically stimulate sales.
In communications with reporters, Gulden recognized the ambiguity surrounding potential tariffs imposed by former President Donald Trump against vital trading partners, including China.
