Puma to cut 900 jobs, initiates business U-turn after sales declines

By Linda Pasquini and Helen Reid (Reuters) -German sportswear maker Puma on Thursday said it would cut 900 jobs in its corporate workforce globally by the end of 2026, while announcing a series of measures to revive the business and combat sharp sales declines. The company had already cut 500 roles worldwide this year as part of a cost-cutting program announced in March. Puma said it would expand the program, as it attempts to turn around its performance under new chief executive Arthur Hoeld. Shrinking market share and tepid demand for the brand's shoes and outfits, as well as a sector-wide hit from U.S. tariffs on imports, have led Puma to warn of an annual loss at the end of July. Shares in the company have lost over 50% of their value so far this year. The company said it had already reduced undesired wholesale business, excess inventory at retailers, and promotions in e-commerce and full-price stores, as well as starting to cut exposure to mass merchants in North America.  It also plans to clean up its distribution and carry out targeted marketing investments, it added. It expects inventories to return to normalised levels by the end of 2026, after a 17.3% increase to 2.12 billion euros in the quarter. The company reported a decline in sales of 10.4% on a currency-adjusted basis to 1.96 billion euros ($2.29 billion) in the third quarter, slightly below the 1.98 billion expected by analysts in a company-provided poll. The company said it expects to return to growth from 2027. ($1 = 0.8575 euros) (Reporting by Linda Pasquini in Gdansk and Helen Reid in London, editing by Matt Scuffham)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)