German manufacturer of sports goods accumulates devaluation by 2025 and announces cut of 500 employees to reduce costs
Puma, a German sporting goods company, announced on Wednesday (12.mar.2025) a series of measures, including job cuts and the closure of non -profit stores.
DECISION comes after a 23% drop in its actions, reaching the lowest level since November 2016. The company cited uncertainty in consumer demand in the United States as one of the main factors for this measure, according to the agency.
Puma CEO Arne Freundt mentioned economic uncertainty as a reason for reducing consumer spending in the United States. “February was bad. March started a little better ”, He stated in an interview with journalists.
Markus Neubrand, chief financial officer, announced the plan to cut 500 jobs globally and close some less profitable stores as part of a cost reduction effort.
Competition with other major brands, such as Adidas and Nike, and rapidly growing emerging brands such as on Running and Hoka, is also a challenge for Puma. The company is adjusting its production and distribution strategies to adapt to a competitive market.
Puma’s financial forecasts for the current quarter and for the year 2025 reflect the problems faced. The company expects low growth in the current quarter, with significantly lower operational profits. For the whole year, perspectives are also pessimistic.
