Following a restructuring of Reebok’s footwear division, layoffs were made at Sparcs, the company that runs Reebok’s US operations.
Sparc, a joint venture between Authentic Brands Group, Simon Property Group and Shein, announced the news to various media outlets including Retail Dive. The statement said certain Reebok licenses will be transferred to other partners to increase focus on the brand’s clothing line.
This led to a reduction in the workforce at Reebok’s footwear business, part of an effort to resolve scaling issues and eliminate duplicate positions. Management did not provide exact numbers on affected employees or departments. However, several merchandising, product management and innovation employees reported on LinkedIn that their positions were eliminated, FootwearNews reported.
Maxwell Beimler, Global Product Manager for Classics Footwear, shared that he is “beyond proud” of the growth he has experienced in his six years at Reebok and asked for “insights on how to deal with a layoff or tips for the transition to a new position”.
Since Authentic’s acquisition of Reebok in 2021, the company has been pursuing a new business model that relies heavily on licensing partners to drive and support international expansion. Shortly after Authentic’s announcement, Sparc Group was named as the company that will now take over Reebok’s US operations. In this role, it will oversee the new Reebok Design Hub, a global center for design, development and innovation.