Puma to Lay Off 13% of Workforce as Sales Decline

Puma, the German sportswear maker, recently announced that it will cut around 900 corporate jobs globally by the end of 2026, about 13% of its corporate workforce, as per the news reports. 

The company is taking these steps as part of a restructuring plan to manage falling sales and weaker demand in key markets. The layoffs follow an earlier round of 500 job cuts announced in March.

Sales Decline and Market Impact

Puma’s third-quarter sales fell 15.3% to €1.96 billion ($2.29 billion), affected by heavy discounting and lower demand. The company’s share price has dropped by about half since the start of 2024, raising investor concerns over performance.

Leadership and Restructuring Plan

Arthur Hoeld, who became CEO in July 2025 after previously working at Adidas, outlined a plan to narrow the product range, reduce discounts, and focus marketing efforts. 

Hoeld said Puma had become “too commercial” and overexposed in low-margin channels. The company plans to simplify its operations to stabilise its business over the next two years.

Shift in Sales and Inventory Strategy

Puma will cut back on selling to discount retailers in the U.S. and increase direct-to-consumer sales through its own stores and website. It also plans to reduce new product launches and buy fewer products from suppliers. Inventory levels rose 17.3% to €2.12 billion in the quarter as Puma took back unsold stock from retailers. The company expects inventories to normalise by the end of 2026.

Footwear Performance

Puma’s Speedcat and Palermo sneakers underperformed during the quarter, especially in Europe and North America, while Adidas’ Samba and Gazelle lines continued to see strong demand. Puma said sales of Speedcat shoes did not meet expectations.

Read More: US Retailer Target to Cut 150 India Jobs as Part of Global Layoffs!

Conclusion

Puma expects a loss in 2025 and calls 2026 a transition year, with plans to return to growth in 2027. The company said it has no plans to sell any business segments as it continues cost and product adjustments.

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