Yeezy Manufacturer Terminates Over Half of Its Workforce

In light of the separation between Adidas and Ye, shoe manufacturer Okabashi has laid off 60% of its staff.

Yeezy Manufacturer Terminates Over Half of Its Workforce

Following the termination of the Adidas and Ye partnership, best known for the Yeezy sneakers, U.S.-based shoe manufacturer Okabashi has laid-off about 60% of its staff, which is over 100 employees effective immediately.

Okabashi was contracted to produce the YEEZY Foam Runner in April 2020. While the layoffs are extremely upsetting for the company and individuals, Okabashi has made it very clear that they stand with Adidas' decision, as they do not support hate speech. The company is now in the process of assisting those who have lost their jobs, working with local government agencies, to find alternative employment and will be providing severance packages that include extended healthcare coverage.

The sudden discontinuation of this partnership will have far reaching consequences, beyond the brand and Ye himself. Other stakeholders in the issue range from manufacturing companies to resellers. Adidas may experience a loss of €250 Million in sales this year alone, and cost Ye millions in business, and future partnerships. Will the fall of the Yeezy impact the entire sneaker market, and if so, by how much?