Puma to Cut 900 Corporate Jobs Globally as Part of Revival Plan Amid Sales Slump

German sportswear maker Puma SE announced on Thursday a plan to cut 900 corporate jobs globally by the end of 2026. This significant workforce reduction is a key part of a broader initiative to revive the company's performance and address recent sharp sales declines. The company had already reduced its global workforce by 500 roles earlier this year as part of an initial cost-cutting program initiated in March.

The expanded program aims to turn around the brand's performance under new chief executive Arthur Hoeld. Factors contributing to Puma's challenges include shrinking market share, tepid demand for its products, and broader sector-wide impacts such as US tariffs on imports, which led Puma to warn of an annual loss earlier in the year. Puma's shares have seen a substantial decline, losing over 50 per cent of their value year-to-date.

To improve its financial health, Puma has been actively reducing its wholesale business, clearing excess inventory at retailers, and scaling back promotions across e-commerce and full-price stores. The company is also decreasing its exposure to mass merchants in North America. Future plans involve streamlining its distribution channels and focusing marketing investments on targeted areas. Puma expects its inventories to return to normal levels by the end of 2026. In the third quarter, the company reported a 10.4 per cent currency-adjusted decline in sales to 1.96 billion euros. Puma anticipates returning to growth starting in 2027.

Impact These measures are designed to restore profitability, improve operational efficiency, and regain market competitiveness for Puma. The job cuts and strategic shifts are intended to reduce costs, optimize inventory, and refocus marketing efforts, ultimately aiming to stabilize the business and position it for future growth. This strategic overhaul is crucial for rebuilding investor confidence and improving the company's financial outlook. Rating: 8/10

Difficult terms * Corporate workforce: Employees working in administrative, management, marketing, and other non-manufacturing roles within a company. * Cost-cutting program: A plan implemented by a company to reduce its expenses and improve profitability. * Market share: The percentage of total sales in an industry or market segment that a company controls. * Tepid demand: Low or lukewarm interest and purchasing activity for a company's products or services. * Sector-wide hit: A negative impact affecting all or most companies within a particular industry or sector. * US tariffs on imports: Taxes imposed by the United States government on goods brought into the country from other nations, which can increase costs for companies. * Wholesale business: Selling goods in large quantities to retailers or other businesses, rather than directly to consumers. * Excess inventory: A surplus of unsold goods that a company has accumulated. * Promotions: Sales or special offers designed to encourage customers to buy products. * Mass merchants: Large retail chains that sell a wide variety of goods at low prices, such as hypermarkets or discount stores. * Distribution channels: The paths and methods a company uses to get its products from the manufacturer to the end consumer. * Targeted marketing investments: Spending money on advertising and promotional activities focused on specific customer segments or market niches. * Inventories to return to normalised levels: A state where the amount of stock held by the company is neither excessively high nor critically low, but at an optimal level for business operations. * Currency-adjusted basis: A comparison of financial figures that removes the impact of fluctuations in exchange rates between different currencies, providing a clearer view of underlying business performance.