Adidas AG (Herzogenaurach, Germany) has announced plans to cut about 300 jobs at its Reebok brand in North and South America in light of the economic downturn.
“This was an inevitable step on our way to making the Reebok organization leaner, more flexible and more profitable to be prepared for future challenges – in particular in the light of the current economic climate,” the world’s second-largest sporting goods manufacturer said in a statement.
Adidas bought Reebok in 2006 for about $3.8 billion to complement its strength in classic sportswear such as soccer boots and to step up its fight against Nike Inc. (Beaverton, Ore.). In its most recent earnings report, Adidas said group revenue in North America fell 7 percent during the first nine months of 2008 due to lower sales in the U.S., while its sales in all other regions of the world grew by double digits. Sales at Reebok slid 2 percent.
About 100 employees at Reebok’s Canton, Mass., headquarters will laid off plus employees across North America – in Indianapolis, Cedar Rapids, Iowa, Montreal and in Mexico. The job cuts are spread throughout the company's departments, although the majority are in sales operations and marketing, said a spokeswoman.
“This is a difficult day for all of us,” said Reebok’s president and ceo Ulrich Becker.