Puma Cuts 500 Jobs Amid Weak US Sales

Puma, the sportswear company, announced on Wednesday that it will be cutting 500 jobs and closing some stores because US customers aren’t buying as much. This news came after Puma shared disappointing sales results, which caused its stock price to drop by 23%.

Puma’s CEO, Arne Freundt, explained that people in the US are worried about the economy and are spending less money. This bad news followed a report of weak sales and profit in January. It raised concerns about how Puma can compete against larger brands like Adidas and Nike, as well as newer brands like On Running and Hoka.

Additionally, Puma mentioned that about 10% of the shoes imported to the US come from China, which now face new tariffs set by former President Donald Trump. Because of this, Puma is asking suppliers to move production to other countries, like Indonesia.

The company estimates its sales will grow slowly this year, aiming for a low to mid-single-digit percentage increase, compared to a 4.4% growth in 2024. On the other hand, Adidas performed well in 2024 and is being careful about its plans for 2025.

One successful product for both Puma and Adidas last year was the revival of classic shoe designs. Puma confirmed that it still plans to sell between 4 to 6 million pairs of its popular “Speedcat” sneakers, inspired by motor racing.