Adidas, 2022 May.
A long queue of people, happy enthusiastic faces, entering the adidas campus. The call was given. All employees must return to the campus, the Linkedin and yammer posters started their night job, lauding the great return, followed by a myriad of emoticons.
Yet, nobody is really happy. The price is 180 per share, lowest since almost a decade, even lower than during the pandemic. One might wonder what happened, when 75% of the employees are dejected with the current management, yet elated faces everywhere. Feverishness, painting a very grim state of affairs, the mass layoffs of the previous years, a culture of discomposure permeating through the pores of every employee, from P levels all the way to M and some S level. The same state of things of several years ago at Henkel.
Employees NPS has reached an all time low, with the company having more detractors than promoters, to a level where managers instruct reports to share the inputs upfront, before submitting, just to make sure they chose the right answers. Truth be told, more people would prefer the company goes bankrupt - a fair retribution, most think, for all the pains and horrors of the last years, and the ones to come, no doubt. The source of all this? Nobody will dare to say the name - the one that shall not be named, the one that has been in a constant cold and hot war with people from his near circle, middle management, down to the people packing the shoes in the oursourced factories.
"Bottom line by all means!"
Workers Council, a mere group of people with no capacity. They are the foe that must be disbanded. The offshoring of positions to Spain, Portugal, Colombia, India, illegal layoffs, has taken its toll on the willingness to do anything worthwhile for the employees, be it salary increase on par with the inflation, or fighting the masqueraded layoffs. There always is a g-n pointed at their head: "WoCo must disappear, they do not let us progress" Detailed reporting of employees' performance, abusive layoffs, abusive contracts, discrimination, racial scandals, prioritized hiring from low cost countries - "some things must be hidden, we cannot let them stop our growth! We must find a scapegoat, be it a new diversity quota HR hire, or whoever. No matter the costs! WoCo must be reorganized, we must find the right people that play our cards right!"
Yes, racism is rampant, even with a diversity quota HR head. "No one can say now we don't do the right thing! We even had the antidiscrimination training thing! It was mentioned all over the place" Yet nothing has changed, it just looks better on paper, gloss and emptiness. Hires and salary ranges are done based on ethnicity or country of origin, which show up in the resumes one way or another. Not too high expectations on this matter, from a company where the big boss said "we love our new brand promoter, Wozniacki. What a beautiful Danish name!" That remark in one of the quarterly meetings, went silently unnoticed, like many other remarks in a highly competitive, cut-throat, discriminatory environment.
The Reebok sale and the subsequent adidas shares buyback plan had no outcome, no boost in the stocks price.
Back to the return to office queue. People talking about hopes that the office work policy is just transient and that the work from home will be the new way to go, soon. Yet, detailed reporting of presence in the campus are expected - "we are rooted in sports! We must sweat in the campus! We must make sure people are here! We are not Google, we are not Apple, we are not a work from home company, we don't want that! Consequence management must be enforced, examples be made!"
Yes, consequences, fear, and lack of any vision about the labor market, neglect of employees and their health. adidas is well known in the region for the sweatshop type of work, sick people, massive turnover, high number of people who develop health problems, unpaid work and overtimes, all hidden under the flexi-time word. And also white collar deaths by exhaustion, very well hidden under NDAs and supposedly chronic illnesses.
They went down slightly, during the pandemic, but will soon have a comeback. Smiling empty zombies are about to have a comeback. Bottom line it is!
A group of students are marveling at the babylonian buildings, huge and posh, Ikea and dream job thoughts cross their mind. "One day I will work here" thoughts cross their minds. Yet, the percentage of working students that were sick due to burnout caused some schools to stop the collaboration with adidas and send the students to some other companies. "We need fresh blood, not old people. We need to get rid of them! They do not fit in the campus image. Do it!"
People brought over from across the world, singles preferred due to self-evident reasons, happy to sweat for the best brand, yet, getting into a spiral of hopelessness, with no exit opportunities, in a region and country where true opportunities for foreigners, mostly, are missing altogether.
"Did you hear X left last month? Did you hear that Y left? Z's been with adidas for 15 years, yet they left adidas". Long standing employees, leaving a company that no longer matches their core values.
People are looking enviously across the street. They say people in the jumping cat brand have it better, many adidas people made it there, and they have a normal life now. Yet the other brand is also plagued by some rumours, alas on a much much lower scale.
"I can't wait to bring this to X in my one on one. I hate her guts anyway. Z got now an M2 promotion, so she should stay overtime and make it happen" The girl looks quite passionate about what she is saying. A toxic environment and culture, where team members will do anything to score first in the team lineup. Friendships end, where future promotion promisses are made. Broken promises mostly, included. A culture of mistrust, deeply rooted in the company's core values that they like to brag about. "You cannot trust anyone, even if you do the right thing or play by the book, you will be sacked anyway. Watch your back, dude!"
"More than 100k applications just last year - we clearly are a sought after employer" Yet this is just the PR. adidas faced challenges hiring, even in low cost locations, potential employees do not even show up for the interviews, first requirement not being satisfied - "do you support home office?" "We do", for now. The devil is in the employment contract, small print and "subject to change".
"We must force them all back into the office. The remote work contracts and jobs can be reorganized, closed, made redundant, we must find a way. I want to see them work hard, here, in the office, every day. Herzogenaurach, Porto, Zaragoza, Portland, Amsterdam, all!"
Q2 quarterly meeting: "We had outstanding results!" Yet, no more hires, the hiring must be abruptly stopped and they must take advantage of the great resignation. "I don't want to hear this is a hiring freeze" says some finances hot shot, "but we will not hire new people", perhaps he was missing the word for what it actually is, a hiring freeze. "Our HR costs are too high! We must save! Projects must be cut! Prioritization!" New layoffs looming.
So who's to blame for the 175 per share?
An over-adversarial and gluttonous leadership, a numbers first, employees are disposable direction, broken down and petrified middle management, petulant workers? The self-gratulatory WoCo that does not do anything to raise mindfulness about Unions, protect the employees from ill treatment and be articulate, overall? Is it the wrong HR approach for hiring overcompetitive and fair play lacking people sometimes, in just the right positions?
There are marvelous people at adidas, yet they tend to be less and less, all looking across the street or elsewhere.
Some still hope things will change, that things will be how adidas was when people worked as a big family, earlier, and wishing for themselves to get to reach the retirement age, or early retirement in Aarhus, for some others.
Bottom line it is!
123 replies (most recent on top)
Just putting it out there: any other guys (as in men) had questionable advances from Roland?
Jasper’s lack of industry knowledge combiwith his hubris resulted in decisions that adidas will not overcome in the next three years. The stock price will not recover anytime soon.
Kasper wanted to fire Shankland when he was still in Russia. He changed his mind when a member of the supervisory board said about Shankland “we need more guys like him” after listening to him at a town hall meeting. The problem starts at the very top and toxicity trickles down. The scrubbing needs to start at VP level and go all the way up. Otherwise, nothing is going to change. And in case someone is still in doubt: SHANKLAND IS SICK (but so are Auschel, Ohlmeyer, and many others)
I don’t work for adidas but I have bought adidas all my life, I tried to buy a pair of football boots today online and literally anything I wanted was out of stock or not in my size! How do you expect to grow sales when your products are outdated and unavailable?! I just bought Nike, all boots available in all sizes and all models! Come on adidas you need to get back in the game!!
When Karen Parkin was asked to leave the company/board, she got a pay off in the region of $5m. This was a published amount. Kasper and the rest will get likewise huge pay offs whether their contract is up or not. Did you get something proportionally appropriate? Will you? I’m thinking not.
Supply chain in pieces, no new products, marketing upside down, SVP Marketing resigns……Grevy try’s to pretend everything is great! And Shankland trying to act like a nice guy in the absence of the Dane…..but too late we’ve all seen his true colours and we don’t forget! We will never forget how he treated our people, our friends and our colleagues.
Now that Shankland, Auschel, and Ohlmeyer know that their time is coming up they are completely unhinged. Unless the new CEO scrubs fast they will leave even more lasting damage. True colors are out, they are petty old ladies that bicker knowing they got lucky in adidas and they will never get the chance to another honey pot like this one. Corrupt and pompous - Impossible is nothing.
I’m sure cleanup of the top level ranks will be one of the targets of the new CEO. Meanwhile I wish Kasper nothing, he got very well paid to bring his hubris and wannabe personality to adidas. Just get to the exit, will you? Hopefully the other human trash will follow.
Thankfully the day came when the tyrant was shown the door, but his rabid dogs still behind, devouring the very soul of this organisation. The way Dane#2 yapped today, was most disgraceful, “ Chinese Flu” , seriously ?? The so called DEI just flushed after his verbal shart. And please give the guy company at his 7:30 coffee time before he orders for a tissue box and icecream.
His departure gladdens thousands from adidas and also from all the companies before adidas, all the families that he destroyed through his arrogance.
What a pitiful way to conclude your career, leaving a state of art galimaufry behind, knowing you will always be remembered as the brands destroyer and one of the most hated CEOs. Gardyloo!
Kasper never wished anyone anything so best way is to do it his style and point with your finger to the exit. Maybe accompanied by one of his smartass comments he gave to others so he UNDERSTANDS that he failed. I’m not against failure, it s the hubris before that which makes me sick. Same hubris you have from the likes of Auschel, Shankland, Ohlmeyer, and many of their appointees.
“We wish Kasper all the best for his future endeavors!”
Now some deep scrubbing in the higher ranks and we should be slowly back on track.
So what of the new CEO? Liked and well respected by his Puma people. The street likes him too as share price jumps up. At last it’s an appointment based on ability and that HR and the DEI police have not had their way. However I hope he does bring diversity to the board as surely he’ll make changes?
Completely agree that the HR SVP for global functions and the works council need to take a very close look at themselves, they have have been enablers in the Australians war on our people…..let’s hope we are near the end game!!
Another Shankland survivor here - wondering what that toxic guy can do to get fired after surviving this long with his well-documented abuses of power. The only thing more sickening than the inept/corrupt Board leadership are their enablers who look the other way (ahem Works Council & adidas HR). This place sickens me. As a longtime employee, I'm praying for severance.
Hopefully Shankland, Ohlmeyer, and Auschel are next. Corruption will not go away as long as these three are there. But typically they will clean up the lower ranks themselves hoping this will keep themselves secure.
Apparently Mr corruption personified Jason Thomas was asked to leave. Better very late than never. Now he has time to drive his Rolls Royce around Dubai (not a joke, he has one).
Every year Marketing Working Budget shifted from agency fees to pay for senior leadership accommodation at Cannes…..:Every year unused MWB shifted to the next year through false po’s with agencies…….adidas is corrupt to the core, leaders without any integrity….
Guys, nothing will happen to them. The Dane had to leave because the share price tanked, everyone else will do business as usual. I would liken adidas leadership to UEFA…rotten to the core and no matter how much you point your finger nothing changes.
For two years I vomited before every 121 I had with the Australian guy. That’s how much he effected me.
Adidas paid google for this feed to rank low on search results. That’s the boards way of correcting what’s wrong.
Guys keep this feed going, it’s the only way to uncover the corrupt culture the board has installed. There must be consequences for the supervisory board as well.
The accumulated points in this feed are probably the most rounded picture of the status quo that anyone can paint. At some point Netflix will make a Doku series on adidas: All Day I Dream About Shankland.
I along with others know what it’s like to be broken by Shankland. The worst part of it is HR know exactly what’s happening in his team, yet no action. They passively watch and facilitate. People deserve better. It took some counseling and time out but I’m a glad to be with another organization now that values my contribution. Through sport HE has the power to destroy lives.
KR has failed. The moment a middle aged white Dane employed a middle aged white Dane to be CMO it was clear he doesn’t understand what it means to be a part of adidas. Appoint a new CEO and CMO pls that we might get back to who we were meant to be. Despite what’s going on in China, Russia and with Ye for many months, Gravvy still employs more and more only for many to be laid off as numbers decline. Never known things so bad and with a share price so low expect to be SOLD to…..Ye…? Puma? UA? Watch this space.
The Dane #2 must go too - Brian is not the right one for the challenges ahead
The last 2.5 years have proven, that Brian Grevy is not the CMO adidas needs and deserves. The facts prove it:
- brand heat all time low
- Innovation not existing
- campaigns do not land
- Sportswear not performing
- Merchandising is a drama
- Brand Operating Modell dysfunctional and broken
- 1st level in competition mode
- Inspiration not existing
- and so on and on and on
Best case would be to step down, as the brand is in the most challenging situation over the last 3 decades and there is no light at the end of the tunnel with Brian Grevy as CMO.
The brand ki--s itself from the insight. Latest drama is Merchandising led by the lost and unexperienced Nicole Ghezali competing with the GMs of the Business Units over leadership and direction. Brian Grevy not being capable to set direction. At the same time sinking millions of Euros into Boston Consulting. This is insane, as everyone is aware and no one dares to speak up and respond. No wonder when former BCG people hire BCG to consult.
Here we go! Third profit warning yesterday within 5 months.
Aside from the product, marketing, innovation, supply chain and culture failures … how on earth can it be that Ohlmeyer, Schreiner and Steffen are still there? They clearly don’t know what they are doing. Finance failed !!!
Does Rabe, Uebber and the rest of KR’s amigos don’t realize that?
Sad to see that there is no end at sight as long as Exec Board and CLG Mafia is still there.
I must say, I often feel sorry for him, must be tiring to act like a tyrant all day. Playing the villain in the play. He should seek help.
Anyone ever noticed that Shankland is BIPOLAR? The guy needs professional treatment not a CEO job.
As a woman who left the brand due to how Shankland treated me, I can only say reading he had lapdancers at Christmas parties does not surprise me at all. No women allowed in his mans club.
I think the only thing Shankland can throw in to the ring is his white towel! He’s destroyed us and is universally disliked across the brand.
I heard Shankland, Ohlmeyer, and Auschel have thrown themselves into the race to succeed the Dane. That shows they don’t care about what has become of adidas and it’s all about them. Any person with an ounce of decency would admit that they failed the adidas culture but power is too sweet to give up. Prepare for new lows of the share price and kiss the number 2 spot in the industry good bye.
Drain the swamp is best done by getting rid of the McKinsey scientology, both former McK Powerpointers now being payrolled and the external troops still consulting the company.
Let’s not forget that all the misery started when McK managed to convince HH to bless the Dane as his successor.
Fascinating to see how those one trick pony McK‘ies now pretend to talk BRAND in anticipation that their Protector could be out any day.
Drain the swamp and bring back Erik Liedtke! It’s the only move that makes sense and unites our people!
Despite the great efforts from our HR leader………You can’t change the culture when the leadership is rotten to the core!
I agree, Shankland is proof that a strong ego and ruthless people management gets you further in a German company than professional competence. The good old adidas culture has been completely annihilated and will take many years to rebuild. If it ever will.
Martin Shankland represents everything that is wrong at adidas, hated by our people, laughs in the face of our values and has successfully created the worst supply chain in industry! The worse he behaves the more the Dane promotes him!
Agree with previous poster, could be he was planted by our competitors to eat us from the inside out.
Lacks empathy, lacks caring and worst of all lacks capability! No other major global organization would tolerate how he treats their people!
Adidas has cancer-we all know this (apologies for the comparison). Sporting goods lives and sells by emotions and authenticity- not efficiency, not diversity, not anything else but sports. There is no leadership within the brand because after Eric left nobody in the first or second management has any. The people are more and more characterless, a forced diversity leads to a massive lack of accountability! My guess is that 90% of the stuff hired in the last 24 months dont understand the company. A change is asked in every position but nobody is executing it because you sit ‘warm and dry’ (german expression). So where were will adidas go? They need a true inspirational leader- no bullsh-tter. Someone who will conquer the competition and the supervisory board. No character no culture no success!
Oh, and please fire Jason Thomas and that psycho Gianni Conti who is a master in using company resources for no other purpose than to further his career.
What do you expect from a board that changes strategy every 3-5 years and pretends they were not responsible for the previous one? Yesterday..bad, tomorrow..good. Hey Tarzan, go tell Jane.