Puma Prowls As Job Cuts And Upstart Rivals Crowd The Playing Field

Puma is battling upstart brands as it seeks to reestablish its power in markets like soccer. Photographer: Betty Laura Zapata/Bloomberg

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German sportswear giant Puma is set to cut 900 corporate jobs worldwide by the end of 2026, deepening a restructuring effort aimed at reviving growth after a sharp sales dip.

The move expands a cost-reduction program launched March that had already eliminated 500 positions earlier this year.

The latest job cuts underscore the scale of the challenges facing Chief Executive and seasoned Puma veteran Arne Hoeld, who took the helm in April with a mandate to restore momentum to the century-old sportswear and equipment brand.

Puma, long positioned as the number three player in the global athleticwear market behind Nike and Adidas, has seen market share erode as consumers gravitate toward a host of niche newer market entrants and initiatives such as the Gymshark/Dick’s tie-up.

Sales have faltered in key markets including the U.S., where Puma has struggled to maintain shelf space amid heavy discounting and cautious ordering from retailers. The company’s problems have been compounded by a broader slowdown in the sneaker and apparel sector, which has been hit by weaker consumer sentiment and, more recently, by the renewed impact of U.S. tariffs on imports.

In July, Puma warned investors that these headwinds would push the company into an annual loss, the first in more than a decade. Its Frankfurt-listed stock has fallen by more than half so far in 2025, leaving its market capitalization below $4.5 billion.

Puma Streamlines Operations

Puma said the latest measures are intended to streamline operations, restore profitability, and refocus on higher-margin channels. The company has already begun paring back exposure to lower-tier wholesale partners and discount chains in the U.S., while also reducing excess inventory that had built up across its retail network.

In recent quarters, Puma has scaled back promotional activity in its e-commerce business and company-owned stores in an effort to protect pricing integrity. Management expects inventories, which rose 17.3% year-on-year to roughly $2.3 billion in the third quarter, to return to normalized levels by the end of 2026.

Revenue in the three months to September declined 10.4% to $2.13 billion, slightly below Street expectations but Puma said it expects to return to top-line growth by 2027, once the restructuring is complete and distribution channels have been realigned.

The company’s challenges highlight the shifting dynamics of the global sportswear market. While Nike and Adidas continue to dominate, albeit with their own issues, newer players such as On and Hoka have gained traction. Puma, best known for its strong positioning in soccer and motorsport, has struggled to define a clear identity in a crowded marketplace.

In recent years, the company’s retail strategy has sought to rebalance its wholesale-heavy distribution network toward direct sales through its own stores and digital platforms and Puma has been expanding its e-commerce infrastructure and upgrading its flagship stores in key global cities such as New York, London, and Shanghai.

Yet the transition has proven uneven, with logistics costs, marketing investments, and fluctuating online demand weighing on margins. The company’s focus now is on improving profitability per square foot in retail and optimizing its digital advertising spend rather than chasing volume growth.

Puma Veteran Hoeld

Hoeld is a Puma veteran who previously led the company’s European and accessories divisions, and he has pledged to simplify the group’s organizational structure and sharpen its product strategy, focusing on a tighter lineup of performance and lifestyle products aimed at reinforcing Puma’s relevance in categories where it has historically been strong.

“At the end of July, we stated that 2025 would be a year of reset. Since then, we have taken important steps to clean up Puma’s distribution, improve our cash management and reset our operational expenses. By expanding our cost-efficiency program, we are moving quickly to address challenges and make the business more efficient and resilient,” Hoeld said in the earnings update.

“I strongly believe the Puma brand has incredible potential with more than 77 years of history. With these strategic priorities, we have the clear ambition to establish puma as a top three sports brand globally, returning to above-industry growth and generating healthy profits in the medium term.”

Puma is also prioritizing long-term brand investments over short-term sales pushes, with new initiatives expected to roll out in 2026 and 2027.