Adidas and Puma Gear Up for Job Cuts Amid Post-Ye Recovery

By The Malketeer

From Scandal to Strategy: The Fallout of Ye’s Partnership

Adidas and Puma, two of Germany’s iconic sportswear brands, are navigating a challenging road to recovery, with job cuts now on the table.

For Adidas, the ghost of its high-profile fallout with Kanye West, now known as Ye, lingers.

The controversial breakup over Ye’s anti-Semitic remarks forced Adidas to liquidate unsold Yeezy stock at a discount, marking a turbulent chapter in the company’s history.

Despite a fivefold surge in operating profits last year, Adidas CEO Bjorn Gulden admits there’s room for improvement.

As part of its recalibration strategy, the company is streamlining operations, which could see up to 500 jobs slashed at its Herzogenaurach headquarters.

Gulden’s goal?

Simplify the brand’s structure while setting ambitious profit margin targets of 10%, up from last year’s 5.6%.

Puma Stumbles, Cost-Cutting Becomes Essential

Adidas’s rival, Puma, isn’t faring much better.

The smaller of the two giants recently reported a slump in profits, falling from €305 million in 2023 to €282 million last year, sending its shares plummeting by 18%.

With “personnel expenses” identified as a cost-cutting focus, layoffs are a likely scenario for Puma as well.

What This Means for Marketers: Lessons in Brand Recovery

For marketing professionals, the journey of these sportswear titans offers invaluable lessons.

Both brands are working to restore trust and profitability, but the Ye controversy highlights the importance of risk assessment in celebrity partnerships.

Brands need to align collaborations with core values and have contingency plans for reputational fallout.

Additionally, the shift toward operational efficiency at Adidas and Puma signals a broader industry trend—simpler, leaner structures aimed at long-term stability.

As marketers, understanding these internal shifts can provide strategic insights when positioning campaigns, especially in competitive and volatile markets.

The road to recovery for Adidas and Puma is a stark reminder: even industry giants must evolve, adapt, and learn from their missteps to thrive in a rapidly shifting landscape.


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