Home News Adidas May Sell Reebok, Thousands of Jobs at Risk

Adidas May Sell Reebok, Thousands of Jobs at Risk

Adidas May Sell Reebok, Thousands of Jobs at Risk

A decision is yet to be taken regarding whether to sell Reebok or not, but Adidas is reportedly considering it. The subsidiary, which was acquired by Adidas 15 years ago, in a $3.8 million deal, is apparently causing losses to the German footwear company. This is mainly due to the pandemic-induced dip in sales and also due to the expiration of the licensing contract with the National Football League and the National Basketball Association. However, selling Reebok, the world’s second-largest sportswear company may put many jobs at risk, especially right now when a number of store closures are taking place in the retail sector.

In 2016, when Kasper Rorsted, CEO, joined, he launched a strategy to turn around profits for Reebok by 2020. It worked and began showing results well before, in 2018, when the 90’s was popularised and the focus was on women’s footwear. However, the pandemic seems to have stalled any hopes of reviving business for Reebok. In fact, early 2020 saw Reebok’s sales down by 20 percent as well as Adidas’ by 18 percent.

Reebok’s market primarily lies in North America, which has been slower to recover than Europe. Further, the brand had a low focus on outdoor and running categories — the two categories saw a surge in sales during the pandemic. Somewhere, the then management at Adidas had failed to understand Reebok’s business model, which further added to the loss in revenue. Reebok may be retained by Adidas or sold off to private equity firms, nothing is final just yet.

Eskalera, a Startup Led by Goldman Sachs’ Former HR Head Has Launched a Diversity and Inclusion Index

Eskalera, a technology startup led by Goldman Sachs former human resources head Dane Holmes, has launched an index to measure corporate diversity and inclusiveness,...

HSBC to Remove 35,000 Jobs Amidst Covid-19 Crises

HSBC Holdings Plc has restarted cutting as many as 35,000 jobs, three months after the coronavirus outbreak forced it to pause a long-awaited overhaul...

Genpact Offers Its Internal Skill Training Program Globally for Everyone

Genpact has announced Adapt and Rise, a role-based online learning platform that leverages Genpact's expertise honed from delivering real-world change for hundreds of clients....

San-Francisco Based Learning Platform Degreed Has Raised $32 Million in New Funding

The upskilling platform, Degreed, has announced $32 million in new funding in direct response to overwhelming demand for better skill insights, talent mobility, and...

Research Shows the Implications of Workplace Layouts on Employee Productivity and Overall Performance

As some workplaces prepare for the gradual return of employees and overhaul office layouts and seating plans, research has shown this could also have...

Employee Concierge ‘Back Technologies’ Integrates Automation Into Internal HR and Other Support Tasks

Companies are under increasing pressure to automate workflows and digitally service their employees, particularly in light of trends toward remote work. It takes an...

HR Strategies to Help Your Business Navigate the New ‘Normal’

No business is immune to the massive changes resulting from the health crisis. Organizations have proven themselves to be agile, and employees have demonstrated...

The Importance Of Diversity And Inclusion In HR, Hiring, Talent Management: Thoughts From A Top Expert

Michael C. Hyter is one of today’s best-known experts on inclusion and diversity and the author of The Power of Choice: Embracing Efficacy to Drive Your Career and The...

HR Expert Highlights Actionable Steps to ‘Make Real Change’ Against Racism in Your Workplace

Kyra Leigh Sutton, Ph.D., is a faculty member at the Rutgers University School of Management and Labor Relations, where she teaches human resources courses...

Adidas Employees Want Company to Investigate HR Chief for Response to Racial Issues

A group of Adidas employees from around the globe is asking the company to investigate its chief human resources officer, as part of a...