Reebok Int'l Eliminates 310 Jobs, Including 113 In Massachusetts
Reebok Int'l yesterday said that it is "laying off 310 employees in North America, including 113 workers in Massachusetts," according to Nicole Wong of the BOSTON GLOBE. Reebok President & CEO Uli Becker in a statement said, "With the current economic conditions and the realities of our business, we have taken the necessary steps to bring our cost structure in line with our 2009 targets." Reebok, a subsidiary of adidas, is cutting about 6.5% of its 1,700 Massachusetts employees, including 101 at its HQs in Canton. Reebok Dir of Global PR Josie Stevens said that the staff cuts are "spread throughout the company's departments, although the majority are in sales operations and marketing." The company also is laying off employees in Indianapolis, Cedar Rapids, Iowa, Montreal and Mexico. After the layoffs, which are effective immediately, Reebok will be "left with slightly more than 8,500 employees worldwide" (BOSTON GLOBE, 1/15). Reebok Corporate Communications Manager Daniel Sarro said that the layoffs are a "'cumulative result of many factors' including 'retail operating conditions and the global economy'" (BIZJOURNALS.com, 1/15).
SHAKY FOOTING: In Portland, Laura Oppenheimer reports for now, "no job cuts are planned" at adidas' North American HQs in Oregon. Reebok sales fell 2% during the first three quarters of '08, compared with the year-ago period, and adidas' North American sales dropped 7% during the same period, despite the company's global sales jumping 11%. Sporting Goods Intelligence Publisher John Horan said that adidas execs are "probably disappointed that their 2005 purchase of Reebok hasn't boosted them to an equal playing field" with Nike. SportsOneSource indicated that Nike's share of the U.S. athletic footwear market from '05-08 grew from 31.5% to 35.5%, while Reebok and adidas' combined share during the same period fell from 18% in '05 to just 9% in '08 (Portland OREGONIAN, 1/15).
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