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Wednesday 30 December 2020

HR News: 28 Dec, 2020

 

1.

Adidas may sell Reebok, thousands of jobs at risk

 

Reebok was acquired by Adidas about 15 years ago, but is now incurring losses. A decision is yet to be taken regarding whether to sell Reebok or not, but Adidas is reportedly considering it. The subsidiary, which was acquired by Adidas 15 years ago, in a $3.8 million deal, is apparently causing losses to the German footwear company. This is mainly due to the pandemic-induced dip in sales and also due to the expiration of the licensing contract with the National Football League and the National Basketball Association. However, selling Reebok, the world’s second largest sportswear company, may put many jobs at risk, especially right now when a number of store closures are taking place in the retail sector. In 2016, when Kasper Rorsted, CEO, joined, he launched a strategy to turn around profits for Reebok by 2020. It worked and began showing results well before, in 2018, when the 90’s was popularised and the focus was on women’s footwear. However, the pandemic seems to have stalled any hopes of reviving business for Reebok. In fact, early 2020 saw Reebok’s sale down by 20 per cent as well as Adidas’ by 18 per cent.

 

 

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2.

General Motors to shut Talegaon plant, render 1,800 jobless

 

The shop floor workers will keep getting their salaries from General Motors, India until January 25. The last functioning factory of General Motors in India will close its shutters on December 24, as relations between India and China continue to be tense. At least 1,800 employees draw salary and hourly wages by working at the Talegaon plant, in Maharashtra. General Motors, the American automobile parts manufacturer had begun its India operations in 1996 and closing of this factory will makr the end of General Motors in India. The second plant at Halol, Gujarat, had already been sold about three years back, to China’s State Administration for Industry and Commerce (SAIC). Currently, MG Motors is located there, and SAIC is using it for its manufacturing purposes.

 

 

3.

Five projects to come up in Karnataka, provide jobs to 13,000

 

The projects are expected to come up in the Hubballi-Dharwad, Chikkaballapura, Jagalur and Davanagere areas of the state with investments from Elest, Miraculum Green Power, Hyunet and Sanali Power. Five projects have been given clearance in Karnataka, involving investment of about Rs 26,659 crore, which is hoped to create jobs for over 13,000 people. Elest will invest over Rs 14 crore to set up an electric vehicle manufacturing unit in Hubballi-Dharwad, which will offer jobs to about 867 people. The same Company will also invest over Rs 6,000 crore to set up a unit to manufacture lithium-ion cells and batteries in the same area. This will give a means of income to about 1,800 people. A second company, Hyunet, will establish plant to manufacture lithium batteries and electric vehicles in Chikkaballapura, at a cost of about Rs 1,825 . This unit will create job opportunities for over 2,000 people.

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