Sportswear giant Puma SE announced plans to cut 900 jobs globally as part of its turnaround strategy.

The move follows a steep sales decline and ongoing competitive pressure from Nike and Adidas. New CEO Arthur Hoeld said the restructuring aims to “simplify operations” and refocus on premium categories.

The layoffs will affect mainly administrative and regional management roles, with changes expected to complete by late 2026.

Puma’s shares have fallen more than 50% this year, and revenue dropped sharply in the U.S. and Asia. The company cited rising costs and weaker consumer demand as major hurdles.

Investors cautiously welcomed the move, saying it shows commitment to restoring profitability. However, analysts warned that deeper brand reinvention is needed to stay relevant in a crowded market. Puma is betting on digital sales and collaborations to spark renewed interest.

The firm’s supply-chain exposure to U.S. tariffs and slower Chinese demand adds further uncertainty.

To offset risk, Puma plans to expand in Europe and Latin America, where margins are stronger. Management said no flagship stores will close for now.

Puma’s struggles mirror a broader industry trend—consumers are buying less mid-priced sportswear, favoring luxury and lifestyle brands.

Whether cost-cuts alone can revive Puma’s image remains to be seen. Execution will be the true test of its recovery plan.

Source: Reuters.