Adidas has embarked on a major restructuring plan, eliminating a significant portion of its management roles to boost growth. The company’s CEO, Kasper Rorsted, has implemented a flatter hierarchy, removing layers of management to encourage quicker decision-making. The move is part of a broader strategy to increase profitability and market share, particularly in North America and China.
The sports apparel giant is also focusing on digitalisation, with plans to generate half of its sales online by 2025. It aims to improve its digital capabilities, enhance its online shopping experience, and upgrade its mobile app. The company is also utilising data analytics to better understand its customers and optimise its marketing strategies.
However, the restructuring has led to some internal tensions, with reports of staff dissatisfaction and high turnover rates. Some employees have complained about the lack of communication regarding the changes, while others have expressed concerns about job security. Despite these challenges, Adidas remains committed to its transformation strategy, believing it will drive growth and future success.
In addition to its internal changes, Adidas is also focusing on sustainability. It plans to use only recycled polyester in all its products by 2024 and aims to achieve climate neutrality by 2050. The company believes that its commitment to environmental responsibility will resonate with consumers and strengthen its brand image.
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