Puma will cut 500 jobs globally as part of its cost-reduction program, the company announced after issuing weak forecasts for the first quarter and 2025.
The German sportswear brand cited sluggish demand in the U.S. and China as key challenges affecting its outlook.
Puma’s sales and annual profits, reported in January, along with its latest guidance, have raised concerns about its ability to compete with larger rivals Adidas and Nike. The company is also working to strengthen its brand against emerging competitors such as On Running and Hoka in the $400 billion global sportswear market.
CEO Arne Freundt stated that around 150 of the job cuts will be at Puma’s headquarters. CFO Markus Neubrand added that the company will also close select unprofitable stores as part of the restructuring.
Freundt noted that only a low single-digit percentage of the business would be affected.
Puma’s cost-cutting strategy aims to improve its earnings before interest and tax (EBIT) margin to 8.5% by 2027, up from 7.1% in 2024.
