adidas has fired two employees in China after anonymous allegations of corruption and nepotism were made against them. This was confirmed by an Adidas spokesperson to Manager Magazin on Wednesday in Herzogenaurach.
Bullying and nepotism at Adidas
The employees were accused in an open letter of violating the company's code of conduct. It turned out that one employee displayed corrupt behavior when working with local suppliers. Additionally, a second person “did not meet the company's expectations for leadership behavior based on mutual respect and trust.”
According to Manager Magazine, the person in question was apparently a high-ranking marketing manager who was fired for bullying and nepotism. The letter, posted on a Chinese social media platform, also claimed that employees had accepted bribes from suppliers and advertising agencies.
Adidas has launched an investigation
In response to these allegations, Adidas launched a thorough investigation, which included the participation of external consultants. This investigation is still ongoing, the spokesperson explained.
For the current year, Adidas expects double-digit growth rates in the Chinese market, once the company's largest and most lucrative. This rebound is attributed to the fact that the Chinese subsidiary, under the leadership of country boss Adrian Siu, has focused more on local fashion tastes. The layoffs represent a blow to Adidas' turnaround efforts in China, which remains a crucial market for the sportswear maker.
China is an important market for German sporting goods manufacturers
In mainland China, Adidas is second only to Nike the second international sportswear brand. Since Beijing lifted Covid restrictions at the end of 2022 and calls for boycotts that arose over Western criticism of China's treatment of the Uyghur minority subsided, the German company has seen renewed sales growth in China.
According to CNN, Adidas is known for relying on celebrities in its marketing in China. The company has already collaborated with well-known actors and singers as brand ambassadors, including Yang Mi, Dilraba and Yi Yangqianxi.