Puma to Cut 900 Jobs Worldwide as Sales Plunge 10% | Company Struggles with Falling Revenue

Business Summary

Puma plans to cut 900 corporate jobs worldwide, with the reductions scheduled to be completed by the end of 2026. Retail stores and manufacturing facilities are expected to be largely unaffected. The company says the cuts are intended to streamline operations and improve profitability while preserving investment in growth.

The move follows a 10.4% year-over-year sales decline in the third quarter. The subtitles report sales of $1.96 billion, but provide an inconsistent euro equivalent, so the currency conversion is unclear. Weakness was reported across Europe, North America, and Asia.

Business Pressures

• Softer consumer demand, particularly for mid-range products.
• U.S. import tariffs that can raise prices for American customers.
• Strong competition from Nike, Adidas, and Under Armour, especially in online sales and product innovation.
• Broader market pressures, including shifting consumer preferences, currency fluctuations, and economic slowdowns.

Strategy and Execution

• Restructure and control costs: Reduce corporate headcount to streamline operations and support profitability.
• Protect growth investment: Continue spending on marketing, product design, and digital growth despite cost cuts.
• Refocus the product mix: Emphasize higher-end and performance-oriented products.
• Expand digital presence: Use digital channels as part of efforts to regain growth.
• Support affected employees: Puma reportedly pledged severance packages and possible reassignments.

Key Metrics and Timeline

• Planned job reductions: 900 corporate roles worldwide.
• Target completion: End of 2026.
• Third-quarter sales change: Down 10.4%.
• Reported third-quarter sales: $1.96 billion; the subtitle’s euro equivalent is inconsistent.
• No specific sales-recovery, profitability, or digital-growth targets were provided.

Source: NEWS9 Live. No individual presenter is identified in the subtitles.