Sportswear manufacturer Adidas is to shut down some regional offices and may close retail stores after its earnings took a huge dive in the first quarter.
The German firm posted pre-tax profits of £8m - a dive of 96% from last year - and is to rush ahead with plans to make savings of about £100m a year.
Adidas chairman and chief executive Herbert Hainer said: "We feel the effects of the economic downturn in many of our key markets."
He added that the group's results had been "materially affected by higher input prices, currency devaluation effects and restructuring costs."
Adidas announced a major restructuring of its operations that would include the elimination of regional headquarters in Europe and Asia.
Mr Hainer said: "We are now in a position to make a game-changing structural refinement to our business.
"The current economic climate adds urgency to accelerate our plans."
A statement said job losses were planned at the group's Reebok, Rockport and TaylorMade divisions, but no figures were provided.
Despite the enormous drop-off in profit for three months from January to March, sales fell by a far more modest 2% to about £2.3bn.
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