Adidas recently communicated a significant restructuring to its employees at the technology hub in India, which was announced during a town hall meeting held on September 15. This reorganisation aims to simplify operations within the company, with hundreds of employees now facing an uncertain future. While Adidas officially confirmed job cuts on September 20, the precise number of roles eliminated has not been disclosed.

The company stated that the effects of this restructuring are less than 20 per cent of its India Technology organisation. However, sources familiar with the situation indicate that the actual impact may be considerably greater. Reports suggest that the layoffs target approximately 350 employees, which would constitute around 45 to 50 per cent of the total workforce at the Gurugram Technology Hub, which consists of about 700 individuals. Among those reportedly affected are software engineers, data scientists, and data engineers.

The figures regarding the extent of the layoffs remain unverified by independent sources. Adidas has not confirmed any estimates of 350 or more employees impacted by this initiative, leaving many questions surrounding the scale of the restructuring.

Internal Job Search Offered To Affected Employees

During the town hall meeting, employees were informed about their options in light of the organisational changes. Reports suggest that the employees impacted by these layoffs were split into two distinct groups. Some received exit letters immediately on September 15, while others were allowed to stay at the company until December 15.

Those in the second group are expected to assist with handover tasks to colleagues in other technology hubs during this interim period. Additionally, they have been granted the opportunity to search for alternative roles within the organisation. Employees who do not secure a new position by December 15 have been informed that this would mark the end of their employment.

The precise terms of severance packages, notice pay, and support for redeployment have not been independently verified, leaving employees uncertain about their financial security during this transition.

Adidas Explains Rationale Behind The Restructuring

In a statement regarding the restructuring, Adidas confirmed the adjustments within its India technology organisation without detailing the specific number of roles impacted. The rationale behind this decision was articulated as aligning the operational model with the dynamic needs of the business. Adidas emphasised that the changes aim to simplify the organisation and bolster essential capabilities within the company.

The full statement from Adidas expressed gratitude for the contributions of its employees and affirmed the company’s commitment to providing appropriate support and assistance to those affected during this challenging time. Despite the restructuring, Adidas reiterated that India remains a strategically important market and that its technology hub plays a vital role in the company’s growth and innovation efforts.

However, the company did not confirm or deny the reported number of job cuts, leaving employees and observers awaiting more clarity as developments unfold.

Future Outlook for The Gurugram Technology Hub

Adidas’ Gurugram office is home to both its local marketing operations and one of its Global Engineering Tech Hubs. The company has been expanding its business presence in India, highlighted by the opening of a Global Business Services centre in Chennai in 2024. Current employment across the Gurugram and Chennai hubs stands at approximately 650 people.

The recent restructuring appears specifically focused on the technology department. Employees affected by the changes have received exit letters or been given until December 15 to find alternative positions within the company. Meanwhile, Adidas describes the restructuring as a means to simplify operations and enhance capabilities, ensuring that India remains a critical component of its technology and digital transformation initiatives.

As this situation develops, stakeholders will be closely monitoring how the restructuring impacts not only the employees but also the future trajectory of Adidas’ operations in India.

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