Puma to cut 900 jobs as sales continue to decline

German sportswear brand Puma will cut around 900 white-collar roles globally by the end of 2026 as sales fall sharply, in what its new chief executive has described as a “reset year” for the business.

The Herzogenaurach-based company said the job losses — equivalent to roughly 13 per cent of its workforce — will be implemented over the next 14 months. The cuts extend an earlier efficiency programme that eliminated 500 positions earlier in 2025.

Puma reported a 10.4 per cent drop in currency-adjusted sales for the third quarter, to €1.96 billion, with wholesale revenue down 15 per cent and direct-to-consumer sales up 4.5 per cent. Gross profit margins fell to 45.2 per cent, pressured by higher freight costs and increased promotional activity. Inventories rose 17 per cent to €2.1 billion, while net debt climbed to €1.2 billion.

Chief executive Arthur Hoeld, who took the top role earlier this year, said the measures are part of a wider plan to clean up distribution, improve cash management, and reset operational expenses as the company seeks to restore growth.

“At the end of July, we stated that 2025 would be a year of reset,” Hoeld said. “By expanding our cost-efficiency programme, we are moving quickly to address challenges and make the business more efficient and resilient.”

The strategy will see Puma scale back what it calls “undesirable wholesale business”, simplify its product range, and focus on performance categories including football, running, training, and sport-style. The company has set a goal of returning to growth from 2027 and re-establishing itself among the top three global sports brands.

The announcement comes amid sustained pressure across the sports-apparel sector, where weaker consumer spending and excess inventory have weighed on margins. Puma has struggled to match the recent performance of Nike and Adidas, both of which are expanding direct-to-consumer operations to improve pricing control and brand visibility.

Analysts said the restructuring aligns with a wider industry shift toward leaner operations and tighter distribution. While near-term costs will rise, Puma’s ability to stabilise margins will depend on how quickly its revised marketing and performance-product strategy gains traction.

Puma’s shares edged lower in early Frankfurt trading following the announcement. The company said more details on the regional impact of the cuts and associated restructuring costs will be released in its next financial update.