Adidas confirms 500 HQ roles to be cut as it lowers profit guidance

Adidas is set to axe 500 jobs at its headquarters in Herzogenaurach, Germany, in a bid to reduce operational costs and lower costs.

The group which currently employs around 62,000 employees stated that it has worked with different departments and different processes and identified work streams how it can “reduce complexity and be more right in what we’re doing in a more simple way”.

Adidas identified that most of the complexities are actually being created in headquarters. According to CEO Björn Gulden, the company identified 500 roles in the headquarters that are “obsolete”.

He said: “It’s not people that have done anything wrong. It’s not the person itself, but it’s actually the role. And therefore, we initiated the programme to see if we could, with the voluntary programme, actually reduce these roles from 500 to zero.”

Amid the restructuring, Adidas also lowered its 2025 profit guidance. Gulden stated that the group’s operating profit is expected to range between €1.7bn and €1.8bn (£1.4bn to £1.5bn), falling short of the €2.1bn (£1.8bn) forecasted by analysts.

The news comes after Adidas posted its latest FY trading update, which saw the group revenues increase 12% from €1bn (£838.5m) to €1.337bn (£1.120bn).

Gulden said: “The process is underway. We still have, I think, 2.5 weeks left to go, then hopefully, we have enough voluntary people in scope that will then leave adidas so that we can do this in a very, what should I say, good way. Should that not be the case, that there will be a social plan that will then, what should I say, support the rest of the levers.

“We are already two months into 2025 and yes, the market is difficult and volatile, but so far we are in really good shape and feel that we are taking the right steps.”