Adidas has reported a return to profitability after selling off its remaining "Yeezy" inventory, moving past its contentious partnership with rapper Ye. Despite achieving an 11% revenue increase and a net profit of 832 million in 2024, the company still faces job cuts at its German headquarters. Up to 500 positions will be eliminated to reduce operational complexity, as decisions about product sales need to be more localized. The departure of the Yeezy line has notably affected Adidas’s performance in the US market, where overall sales declined due to lower Yeezy revenues.
Adidas reported a return to profitability after selling off its remaining "Yeezy" stocks, but is still proceeding with job cuts at its headquarters.
The termination of the Yeezy range has hit Adidas particularly hard in the US, where overall sales fell 2% in 2024 due to a drop in Yeezy sales.
Chief executive Bjorn Gulden stated that to reduce operational complexity, Adidas must cut up to 500 jobs, emphasizing the need to break many of their own established rules.
Adidas plans to become the number one sportswear brand globally, except in the US, where the decline in Yeezy sales has impacted revenue.
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