Adidas' "New Beginning" Brings Layoffs, Relocations In U.S.

Adidas' U.S. Reorganization Includes Layoffs, Moves

adidas America is "undertaking a major U.S. reorganization, including job relocations from its Portland [HQs] as well as layoffs, in the wake of reported declines in U.S. market share," according to Brent Hunsberger of the Portland OREGONIAN. adidas spokesperson Andrea Corso said that "fewer than 25 employees ... were laid off in the overhaul unvieled on Thursday." Two adidas employees estimated that "40 to 80 workers -- mostly in customer service, credit, sales and marketing -- were asked to move." adidas America President Patrik Nilssen said in a statement that the changes were "part of an internal process started last year called 'New Beginning,'" in which "among other things, the plan aligns the company's marketing and sales staff into four geographic regions." Nilssen said that workers "organized under sports categories and its western region will remain in Portland," while other jobs will move to offices in Dallas, N.Y. and Chicago. Nilssen said that an "unspecified number of new jobs" will be created in those cities as well as in Portland, Pittsburgh and Spartanburg, South Carolina. Corso: "This isn't being done as a cost-savings exercise. ... We're positioning the brand to be closer to the consumer." In '07, South Carolina officials announced a "major $150[M] expansion of adidas' distribution center in Spartanburg." State economic development officials said that adidas "planned to shift distribution of adidas-branded apparel and Reebok-branded footwear and apparel to Spartanburg by 2009, employing 1,200" (Portland OREGONIAN, 4/4). Workers being moved "are being offered relocation packages and, if they decline to move, bonuses to stay on through the next few months to help with the transition" (OREGONLIVE.com, 4/4).