Major job cuts at Puma! The sportswear giant from Herzogenaurach has announced plans to eliminate 500 positions, including 150 in Germany, as confirmed by a company spokesperson in response to a BILD inquiry. Puma currently employs over 18,000 people worldwide.
Employees informed about layoffs
The workforce was officially informed about the downsizing during a company meeting on Tuesday evening. However, uncertainty had already been growing among employees at the Adidas rival, according to BILD sources.
The reason? Puma CEO Arne Freundt, 45, introduced a cost-cutting program in January, estimating one-time expenses of €75 million. This comes as the company announced on Tuesday that its pre-tax profit is expected to decline from €622 million to between €445 million and €525 million this year.
Stock market struggles and declining profitability
Last year’s financial results had already sent Puma’s stock price tumbling, nearly halving its value in recent months.
Despite a 4.4% increase in revenue to €8.8 billion in 2024, Puma remains far behind its top competitors:
- Nike: €49.3 billion
- Adidas: €23.7 billion
However, profitability remains a major concern for Freundt, investors, and market analysts alike.
Leadership criticism and strategic concerns
Internally, Freundt is facing criticism for his premium positioning strategy, which some believe has not delivered the expected results. In an interview with Handelsblatt, he stated that Puma should be “positioned at a higher level” to enhance its market appeal.
Adding to the tension, many employees still mourn the departure of former CEO Bjørn Gulden, who left Puma for Adidas in 2023—joining their long-standing rival, which is also headquartered in Herzogenaurach.
During Gulden’s nearly ten-year tenure, Puma’s stock reached record highs, surpassing €114 per share in November 2021. Given the recent stock decline, his departure is seen as a turning point for the company.
Puma’s official statement on layoffs
A Puma spokesperson commented: “We cannot be satisfied with our profitability and must ensure that our costs do not rise faster than our revenue. This has led us to make this difficult decision.”
Regarding the job cuts, the company clarified:
- The adjustments will be socially responsible.
- No forced layoffs are planned.
- Some vacant positions will not be refilled.
- Natural employee turnover will help reduce headcount.
- A voluntary severance program will be introduced in the coming weeks.
- With these measures, Puma aims to stabilize its financial situation and regain investor confidence.
