Thread regarding Adidas layoffs

Adidas stops share buyback program & cuts Executive salaries

https://www.adidas-group.com/en/media/news-archive/press-releases/2020/ad-hoc-adidas-stops-share-buyback-program/

Considering the high level of economic uncertainty caused by the dynamic developments related to the coronavirus outbreak, the adidas Executive Board decided to proactively adopt a conservative approach to liquidity management in order to preserve the company’s financial flexibility in the current environment.

After already temporarily suspending the 2020 tranche of its current multi-year share buyback program on March 17, immediately after retail closures across Europe and North America started to come into effect, the Executive Board decided today to formally stop the repurchasing of adidas shares for the remainder of the year. Consequently, the company will not deploy the amount of up to € 1.0 billion that was initially planned for the repurchase of own shares in 2020.

The six members of the board at Adidas are to forgo half of their wages until further notice. Executive salaries are to be cut by 30%. This is attributed to the massive turnover decline caused by coronavirus in Europe, North and Latin America and some countries in the Asia-Pacific region. These regions account for around 50% of its turnover in these regions. Adidas wants to massively expand its own online business.

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Post ID: @OP+14iEKwfO

2 replies (most recent on top)

There’s an internal spreadsheet that they circulated collecting everyone’s ideas on how to still promote and drive sales during this crisis. How about you do something nice and donate all those SSTR50 sitting at the DC that no one is going to buy because your marketing and branding is complete sh–. SSTR50 campaign was cut early, no sh–, every external I talked to saw that coming. But they have people sitting there for 10 - 20 years collecting paychecks that have no clue how to connect with consumers. Good luck. Agreed, just the beginning for adidas. They’ll fall in Under Armors ashes.

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Post ID: @2xyo+14iEKwfO

The post above is just cheap advertising. Tell all the nice stories to the people that got laid off. Or to the external self employed that got an immediate termination. Harm mentioned that once this crisis is over, they will continue with the reorg and layoffs. Adidas is nothing but a greedy company that the employees are ashamed to work for. #harmleave

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Post ID: @1trs+14iEKwfO

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