German sportswear giant Puma announced plans to cut approximately 900 corporate positions worldwide by the end of 2026 as part of a sweeping restructuring effort under its new CEO, Arthur Hoeld. The move is aimed at addressing sharp sales declines and weakened brand momentum, marking one of the most significant transformations in the company’s recent history.
The company had already eliminated around 500 positions globally in March, and the new announcement signals an expansion of its cost-cutting program. “I firmly believe that the Puma brand is intact and has incredible potential,” said Hoeld, expressing confidence in the company’s future and its ability to rebound.
Sales Drop 10%, Inventory Remains Elevated
In the third quarter, Puma reported organic sales of €1.96 billion (approximately $2.29 billion), down 10.4% year-on-year, falling slightly short of market expectations of €1.98 billion. Inventory levels rose 17.3% to €2.12 billion, though the company plans to restore them to normal levels by the end of 2026.
The challenges stem largely from Puma’s longstanding reliance on wholesale distribution, which has led to a decline in brand value and exclusivity. In recent years, the growing presence of mass retailers and discount channels has diluted the brand’s premium positioning. To counter this, Puma plans to accelerate its shift toward a direct-to-consumer model, focusing on its own retail and e-commerce operations.
Puma has already taken steps to reduce undesirable wholesale partnerships, excess retail inventory, and excessive promotional activity across both e-commerce and brick-and-mortar stores. Under Hoeld’s leadership, the company is now concentrating on its core categories—football, training, running, and sports fashion—while streamlining its product portfolio and reducing dependence on mass retailers in North America. By eliminating unnecessary SKUs and clarifying its brand direction, Puma aims to achieve healthy and sustainable growth from 2027 onward.
Stock Halves as Industry Faces Broader Headwinds
Puma’s shares have fallen more than 50% since the beginning of the year. The company’s struggles reflect a broader downturn across the global sportswear sector, as U.S. import tariffs and softening consumer demand weigh on major players. The gap between Puma and its larger rivals—Adidas and Nike—has widened further.
Puma has positioned 2026 as a transition year, with plans to regain growth from 2027 onward. While the road to recovery remains challenging, the company views brand revitalization and a healthier distribution network as key pillars for its long-term turnaround.
Copyright © 2025 Oui Speak Fashion. All rights reserved.