adidas Chair & CEO Hainer Says Company Will Cut Back On Spending

Hainer Informs Employees Via Email About Budget Cut, Hiring Freeze, No Year-End Parties

adidas Chair & CEO Herbert Hainer "emailed all employees Friday to announce austerity measures to cope with a global slowdown in consumer spending," according to Ted Sickinger of the Portland OREGONIAN. Hainer told employees that the global financial crisis is "changing markets and consumer behavior and 'hence poses an immediate threat to the prospects for our business.'" Hainer said that the company, effective immediately, is "imposing a hiring freeze, cutting external meetings, seminars and consultants, and aiming to pare travel expenses next year by 15[%]." Hainer also said that the company this year "will do without year-end parties, which cost a total of about $6.3[M]." Hainer in the email said, "We believe the current climate does not offer an occasion to party." Hainer "did not mention layoffs," but he said adidas would "have to make structural adjustments here and there" (Portland OREGONIAN, 10/25).

BUYING SHARES: BLOOMBERG NEWS' Holger Elfes reports adidas "bought back 10.2 million of its own shares" between January 30 and October 22 for US$509M. The stock, which was bought at an average price of US$50.89, represents "about 5[%] of all outstanding shares" (BLOOMBERG NEWS, 10/27).