Adidas has announced significant layoffs affecting nearly 50 per cent of its workforce at its technology hub located in Gurugram, India. The decision reportedly impacts various roles including software engineers, data scientists, and data engineers. While the company has acknowledged these cuts, it has not released specific figures regarding the number of employees who will be let go.

In a statement provided to Wocult, Adidas described the decision to reduce its technology roles in India as a “difficult” one. The organisation stated that the layoffs are part of a broader strategy to align its operating model with evolving business requirements. The company expressed gratitude towards its employees for their contributions and emphasised commitment to providing support for those affected during this transition.

Details of the Layoff Process

Reports indicate that approximately 350 employees are estimated to be affected, out of a total workforce of around 700 at the Gurugram hub, translating to a reduction of roughly 45 to 50 per cent. Employees were reportedly informed about the layoffs during a town hall meeting held on September 15. The announcement has stirred concerns among staff regarding job security and future prospects within the organisation.

The layoffs have been organised into two groups. While some employees were handed exit letters immediately following the announcement, others have been allowed to remain with the company until December. This latter group is expected to complete their current projects and facilitate handovers to colleagues in other technology hubs, while simultaneously seeking alternative positions within Adidas.

For those who do not secure a new role by the end of this period, December 15 has been designated as their final working day. However, specifics regarding severance packages, notice periods, or redeployment support have not been disclosed by the company, leading to uncertainty among the affected employees.

Adidas’ Growth and Recent Developments

The Gurugram office serves as a significant location for Adidas, housing not only its local marketing operations but also being one of its Global Engineering Tech Hubs. In recent years, the company has expanded its presence in India, including plans to open a Global Business Services centre in Chennai in 2024.

This expansion reflects Adidas’ overall growth strategy, which aims to enhance its operational capabilities and reinforce its market position. The recent layoffs appear to be a recalibration in line with changing industry dynamics and possibly internal performance evaluations within the technology sector of the company.

Adidas aims to support its workforce during this period of transition, but the lack of clear guidance regarding severance and job placement has left many employees in a state of apprehension about their future with the company. As the situation develops, employees and industry observers will be monitoring any further statements from Adidas regarding the implications of these layoffs on its operations in India.

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