Puma to cut 500 jobs worldwide and shut unprofitable stores over weak US demand

This comes right after the German sportswear maker posted disappointing quarterly and annual forecasts a day before, resulting in its shares slumping 23%.

Puma announced on Wednesday that it will be cutting 500 jobs worldwide as well as close some unprofitable stores due to uncertain US consumer demand.

A Puma Speedcat OG sneaker is displayed at a store in Paris, France, January 24, 2025. (Benoit Tessier/Reuters)

This comes right after the German sportswear maker posted disappointing quarterly and annual forecasts a day before, resulting in its shares slumping 23%, according to a report by news agency Reuters.

The company's CEO Arne Freundt had said that Puma's target consumers in the US were not spending due to economic uncertainty.

The grim outlook came after weak quarterly sales and annual profit announced in January, which caused concerns regarding Puma's ability to compete with bigger rivals like Adidas and Nike, along with new and fast-growing brands like On Running and Hoka, according to the report.

On top of this, Puma also confirmed that Chinese production made up about 10% of shoe imports into the United States, which are now subject to the new tariffs by President Donald Trump.

Due to this, the company is urging suppliers to diversify production away from China to other countries like Indonesia.

Puma has forecasted its annual currency-adjusted sales to grow in a low- to mid-single-digit percentage rate, as compared to 4.4% in 2024, according to the report.

Meanwhile, Puma's larger rival Adidas recorded a solid performance in 2024 and adopted a cautious stance for 2025.

What has worked last year for both brands is retro shoe models which were relaunched. Puma said that it still aims to sell 4 million to 6 million pairs of its relaunched motor racing-inspired "Speedcat" sneaker, according to the report.