German sportswear giants Adidas and Puma said they would seek to cut costs, including through possible job cuts, because of a desire to increase profits, AFP reported.
Adidas said it wanted to ensure "long-term success" and had "begun exploring how we can adapt the structures of our business to the reality of our operations".
This could affect the number of positions at the group's headquarters in Herzogenaurach, southern Germany, a company spokesman said.
The changes will be made "with the utmost respect and care for employees," he added.
German publication Manager Magazin said the plans could affect up to 500 employees and reflect CEO Bjorn Gulden's desire to simplify Adidas.
The news comes at a time when the group is trying to put behind it a difficult few years following the furore surrounding musician and entrepreneur Kanye West, now known officially as Ye.
Adidas developed the Yeezy sneaker in collaboration with West, but ended the partnership after his anti-Semitic comments sparked outrage, prompting the company to write off some of the stock and sell the rest at a discount.
Preliminary results released this week showed that Adidas' operating profit jumped fivefold last year after 2023 earnings were hit by the fallout from the West crisis.
Gulden said Adidas needs to start doing better and the company is targeting a profit margin of 10%, up from 5.6% last year.
Puma, Adidas's smaller rival, said it was also looking to cut costs, including through "staff costs" - suggesting there could be job cuts - after posting disappointing results.
Shares in the company fell as much as 18% on the morning of 23 January after net profit last year fell to €282m from €305m a year earlier. | BGNES
