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German sportswear manufacturer Puma has announced plans to cut 13% of its global workforce, equivalent to approximately 900 jobs, by the end of 2026, as the company continues to grapple with declining sales. This comes in addition to the 500 positions already eliminated earlier this year under a cost-cutting initiative introduced in March.
According to the company's latest financial report, Puma's third-quarter sales dropped by 10.4% on a currency-adjusted basis to 1.96 billion euros, slightly below analysts' expectations of 1.98 billion. The brand cited ongoing market pressures, rising production costs, and sluggish demand in several regions as reasons for its downturn. Despite the setback, Puma expressed optimism that it will return to growth by 2027.
The restructuring plan reflects the challenges faced by global apparel companies amid fluctuating consumer spending and economic uncertainty. As inflation continues to affect household budgets, many consumers have shifted toward more affordable or sustainable options, impacting major brands such as Puma, Adidas, and Nike.
Puma, headquartered in Herzogenaurach, Germany, stated that it aims to streamline operations, enhance supply chain efficiency, and focus on digital growth strategies. The company's leadership emphasized that while the job reductions are regrettable, they are necessary to ensure long-term competitiveness.
Industry experts suggest that the cuts could help stabilize Puma's financial position and enable it to redirect investments toward innovation and marketing. The company remains one of the top players in the global sportswear market, known for its partnerships with athletes and collaborations with fashion designers. However, sustaining that position in an increasingly competitive market will require significant adaptation.
As of now, Puma's executives remain confident in the brand's resilience. They reaffirmed their commitment to innovation and sustainability as the company prepares to rebuild momentum. Despite current challenges, analysts note that Puma's strong brand recognition and loyal consumer base could help it recover once global spending improves.
