Puma to cut 900 jobs as sales slump

(Sharecast News) - German sportswear brand Puma said on Thursday that it was planning to cut 900 jobs as it looks to turn the business around.

News of the job cuts came as Puma said that third-quarter sales fell 10.4% at constant currency to �1.96bn, with adjusted earnings before interest and tax down to �39.5m from �237m in the same period a year earlier.

The gross profit margin declined 260 basis points to 45.2% due to increased wholesale promotions, inventory reserves from distribution clean-up, and higher freight costs, Puma said.

"In response to the expected significant sales decline and lower sales base, Puma is taking another decisive step to address its elevated operating expenses by expanding its cost efficiency programme beyond the previous initiative 'nextlevel'," it said.

The group said it was planning to axe around 900 white-collar roles globally by the end of next year, having already cut 500 roles in 2025.

Chief executive Arthur Hoeld said: "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 programme, we are moving quickly to address challenges and make the business more efficient and resilient. With third-quarter results meeting our expectations, we remain committed to executing these measures with discipline."