- Prachi Singh |
Considering the high level of economic uncertainty caused by the dynamic developments related to the coronavirus outbreak, Adidas Ag said in a statement that its executive board has decided to formally stop the repurchasing of Adidas shares for the remainder of the year.
The company had earlier announced temporary suspension of the 2020 tranche of its current multi-year share buyback program, immediately after retail closures across Europe and North America started to come into effect. Consequently, Adidas added that the company will not deploy the amount of up to 1 billion euros that was initially planned for the repurchase of own shares in 2020.
Additionally, in Germany, the company has reached an agreement with the local works councils to reduce working hours for its employees in the retail sector and at the sites in Scheinfeld and Uffenheim. Adidas added that this agreement provides for paid leave, a reduction in overtime and also short-time working. Around 1,200 Adidas employees are currently affected by short-time working.
Picture:Adidas media centre