Scoop: Reebok Bid Farewell to 150 Employees as They Brace for New Beginnings
Reebok plans to dismiss 150 staff members, with Authentic Brands Group set to assume control.
In the wake of preparing for new ownership, athletic retail giant Reebok is letting go of approximately 150 employees, as confirmed to Retail Dive. The Boston Globe originally broke the news. Most of the impacted workers hail from Reebok's headquarters in Boston, according to a company representative. These layoffs, affecting employees from various departments, are a part of the company's restructuring tactics linked to its acquisition.
Authentic Brands Group is slated to take over Reebok in the first quarter of this year, synonymous with the onset of the layoffs.
Inside Scoop:
Reebok is embarking on a new journey under Authentic Brands Group following Adidas' decision to sell the brand for $2.46 billion in August of last year. As part of its new era, Reebok is making organizational shifts to align with its new vision.
"Last week, in preparation for a new operating model, we announced a restructure of our organization, which will impact a number of employees at our Boston, MA headquarters," Reebok stated concerning the layoffs. "We thank these employees for their years of service and dedication to Reebok. Further details about the organization's future will be revealed post-acquisition."
Ever since Adidas officially put Reebok up for sale in February 2021, the company has been working on defining a brand-new identity. In June, the first glimpse of the updated brand direction surfaced, spearheaded by Vice President of Creative Direction, Kerby Jean-Raymond. This unveiling led to a series of films, including the provocative "Radicalm" video spotlighting Reebok's women's collection.
Over the years, Reebok has grappled with its identity as it expanded into diverse markets. Under Authentic Brands, the company has an opportunity to redefine itself and potentially regain a competitive edge in the sports industry. Recently, Authentic Brands secured a deal with JD Group to extend Reebok’s distribution to 2,850 stores across North America and Europe, encompassing Finish Line and JD, among other retailers.
Although Reebok faced financial challenges under Adidas, it rebounded to positive sales growth in 2019, asserted Adidas, and profitability improved. In recent months, Reebok has fared reasonably well, according to Matt Powell, senior industry adviser for Sports with the NPD Group. Per a recent webinar, Reebok witnessed active apparel sales volumes grow by 118% in 2020 compared to 2019, and 81% in the women's active apparel segment, specifically. In the footwear category, Reebok has also displayed improvement.
"Running shoes drove gains in the performance footwear category, as smaller brands flourished, including On, Hoka, Puma, and Reebok," Powell revealed in an NPD report on Q4 published last Friday.
- Reebok, in preparation for its new ownership by Authentic Brands Group, is restructuring, leading to the departure of around 150 employees.
- As part of its organizational shifts, Reebok is working on an updated brand direction, with the first glimpse seen in June 2021, headed by Vice President of Creative Direction, Kerby Jean-Raymond.
- In the sports industry, Reebok, under Authentic Brands, has an opportunity to redefine itself and potentially regain a competitive edge, having secured a distribution deal with JD Group.
- Despite financial challenges under Adidas, Reebok showed positive sales growth in 2019, with active apparel sales volumes growing by 118% in 2020, and 81% in the women's active apparel segment, according to a recent webinar by Matt Powell.
- In the realm of artificial intelligence (AI), the sports industry is witnessing smaller brands excel, including On, Hoka, Puma, and Reebok, as revealed in an NPD report on Q4 published last Friday.
