Puma to cut 900 corporate jobs and ramp up marketing in turnaround plan

New Delhi: German sportswear giant Puma plans to cut approximately 900 corporate jobs by the end of 2026 as part of as part of restructuring effort, according to news reports. 

The layoffs, targeting white-collar roles and representing about 13% of its global administrative workforce of around 7,000, come on top of 500 positions already eliminated earlier this year. 

The company also vowed to streamline its offerings and ramp up marketing to reclaim its position in the competitive athletic apparel market.

The development coincided with Puma's third-quarter earnings report, which revealed a sharp 15.3% drop in sales to €1.96 billion ($2.29 billion), largely due to increased discounting and currency fluctuations. Inventories swelled by 17.3% to €2.12 billion, signaling ongoing challenges in clearing stock. 

News reports state that Puma's shares have plummeted more than 50% this year, reflecting investor concerns over the brand's trajectory in a sector dominated by rivals like Nike, Adidas, and emerging players such as On Holding and Hoka.

CEO Arthur Hoeld, who took the helm amid the company's struggles, described the moves as essential to reset Puma's strategy. "Puma has become too commercial, overexposed in the wrong channels, with too many discounts," Hoeld said.

He highlighted the failure of recent products like the Speedcat sneakers, which underperformed in key markets such as Europe and North America. Hoeld expressed optimism about the future, adding, "I am sure we will get the cat on track again."

As part of the revamp, Puma plans to reduce its product range, limit new releases, and prioritise direct-to-consumer sales through its own stores and website while curtailing partnerships with cut-price retailers, particularly in the US. 

The company will sharpen its focus on core categories like running, football, and training to build stronger brand narratives. 

Marketing efforts will be bolstered to create more compelling product stories from the development stage, aiming to resonate better with consumers and drive premium positioning.

Financially, Puma anticipates a loss in 2025, with 2026 serving as a "transition year" before returning to growth in 2027. 

Hoeld's vision includes establishing Puma as a "top three sports brand globally," with faster-than-industry growth and healthy profits in the medium term. 

The strategy follows four months of consultations with employees, retailers, investors, and partners to address the brand's challenges in both sports gear and casual fashion segments.