Puma Slashes 900 Jobs Amid Ongoing Sales Slump

German sportswear giant Puma (ETR: PUM) is tightening its belt once again, revealing plans to reduce its global workforce by approximately 13%, translating to 900 positions cut by the end of 2026. This move comes on the heels of earlier layoffs totaling 500 roles in 2025.

Sales figures haven't been kind to the brand either. For the third quarter, Puma's sales fell 10.4% on a currency-adjusted basis to 1.96 billion euros ($2.29 billion), narrowly missing the analyst forecast of 1.98 billion euros. The slump is partly a result of softer consumer demand and persistent headwinds tied to US tariffs affecting costs and margins.

The push for a leaner operation is led by the new CEO, Arthur Hoeld, who is spearheading the company's turnaround strategy. After a few rough quarters, Puma is eyeing a return to sales growth starting in 2027, though the path there looks challenging given ongoing economic uncertainties.

Earlier in March, the company unveiled its initial cost-saving program aimed at streamlining operations and containing expenses, but persistent market pressures have necessitated expanding these efforts. The job cuts this time around represent a significant step up in scale.

External factors such as trade tensions with the United States continue to weigh on Puma's top line. The brand hasn't escaped the ripple effects of tariffs, which have squeezed profitability and complicated global supply dynamics.

The sportswear sector at large has been grappling with fluctuating consumer interests and competitive pressure. Puma's latest results reflect a tough environment where maintaining market share demands constant adjustment and innovation.

With nearly 1,400 jobs trimmed over the course of this year, the company is clearly prioritizing operational efficiency. However, sales momentum remains sluggish, and Puma's story underscores the difficulties even established brands face amid shifting global economic currents.

Whether the company's focused restructuring will pay off sufficiently to revive growth in the near future remains to be seen. But the delay until 2027 hints that this is a long game rather than a quick fix.