PUMA will reduce the world levels worldwide as part of the cost reduction program, the company announced after issuing weak expectations for the first quarter and 2025.
The German sportswear brand has indicated slow demand in the United States and China as major challenges affecting its outlook.
PUMA sales and annual profits, reported in January, along with the last instructions, have concerned with concerns about their ability to compete with the largest competitors Adidas and Nike. The company is also enhancing its brand against emerging competitors such as Running and Hoka in the 400 billion dollar sportswear market.
CEO Arni Friwandt stated that about 150 job cuts will be at the headquarters of Puma. Marcus Marcos Newoprand added that the company will also close unprecedented selection stores as part of the restructuring.
Freundt indicated that the low percentage of the individual number only will be affected.
PUMA’s cost reduction strategy aims to improve its profits before the interest of interest and taxes (EBIT) to 8.5 % by 2027, from 7.1 % in 2024.
