Wednesday, 5 December 2012

Adidas AG subsidiary Reebok cuts 65 jobs


Troubled Adidas AG subsidiary Reebok International Ltd. is cutting about 65 positions at its headquarters in Canton, Mass.

The Boston Globe reports that the cuts represent "just under 7 percent of the Canton workforce there, as part of a global restructuring."

"Worldwide," says the story by Jenn Abelson and Callum Borchers, "Reebok said it will eliminate 150 jobs, including by closing its European office in Amsterdam and its Asia-Pacific office in Hong Kong. In all, it has 8,000 employees."

The North American headquarters for Germany-based Adidas AG are located in North Portland, where about 850 people are employed. Today's action has no connection to Adidas America, spokeswoman Lauren Lamkin said.

Reebok has struggled to meet expectations since Adidas purchased the company from Paul Fireman in 2005 and completed the deal the following year for $3.8 billion. Some of the company's revenue struggles this year have been blamed on the loss of the NFL apparel contract to Nike as well as the ongoing National Hockey League lockout of players. Reebok-CCM Hockey is the NHL's official apparel supplier.

In late September, Adidas announced it was cutting its 2015 sales target from $3.9 billion to $2.6 billion, The Boston Globe reported. Earlier in September, the company announced a management shakeup, The Patriot Ledger of Quincy, Mass., reported.

Then there is Reebok India. Two former Reebok India executives were arrested on fraud charges after an ongoing investigation stemming from missing Reebok inventory in the country. Meanwhile, retailers selling Reebok in India revolted against Adidas AG's plan to shed itself of some of its Reebok stores.
http://www.oregonlive.com/playbooks-profits/index.ssf/2012/12/the_lineup_adidas_ag_subsidiar.html

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