Adidas Group removes Asian management

• Annual cost savings of more than €100 million
• Asian management absorbed into German HQ
• No comment on staffing restructures 
  

Asia - Adidas Group looks set to absorb the regional management for Adidas and Reebok into its German headquarters, as part of a wide ranging cost cutting exercise.

To save an estimated €100 million annually, Adidas will shut down its regional headquarter in Asia and Europe, with up to 100 jobs expected to go as part of the move.

Adidas could not be reached for further comment, but in a press statement Herbert Hainer, CEO & chairman of Adidas Group, said the current economic climate had accelerate its cost saving plans.

"This strategic review focused on identifying and supporting key business opportunities while eliminating costs that do not contribute to the immediate business success," he said.

Apart from Asia, there will be a joint operating model between Adidas and Reebok in Europe and in Latin America, but the company stressed Adidas and Reebok would remain as separate brands.

Its retail business will also come under review, with under performing retail stores to be identified in coming months.

Nike is also expected to initiate a wave of redundancies as part of the restructure.

A Nike spokesman refused to comment whether the Asia headquarter would be closed, but local press is reporting that 300 people will go once the Asia office is shut down.

"The decision to reduce our workforce has been a difficult and challenging one as it affects our colleagues, teammates and friends," Mark Parker, president and CEO of Nike said.

"We remain a growth company and we know these changes have created a stronger organization that will enable us to invest in our most significant opportunities."