A didas has initiated a hiring freeze but suggested it does not plan to conduct layoffs after it cut ties with a hip hop mogul.
This is not something to discuss. Adidas plans to reassign employees who worked on Ye- branded sneakers and apparel to other areas of the organization, according to a spokesman. The company has instituted a hiring freeze, according to the company.
Difficult is how the German footwear giant is described. It's going to lose $250 million in profits this year by walking away from Ye just before the holiday season. Some 4% to 8% of the company's annual revenues are brought in by the Yeezy line.
The impact of this move will be more severe than anticipated. He thinks that the company could make 10% to 15% of its net income because of its high prices.
The company warned investors last week that profits will be lower than expected this year due to declining consumer demand in China, the US and Europe. There is a lot of unsold goods at the company. Costs associated with winding down its operations in Russia will be incurred by Adidas.
The company's stock has lost two-thirds of its value this year and is now worth less than it was a year ago. The S&P 500 has fallen in the past year.
Even without Ye, the company still ships more than 300 million shoes a year. More than $20 billion was generated by the company last year.
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