Adidas India layoff: Why German sportswear giant has fired engineers and data scientists

In a major round of layoffs, Adidas has reportedly slashed 20 per cent of roles in its technology team in Gurugram. Those affected include software engineers, data scientists, and data engineers

A town hall meeting and a notice to find another job were unexpected news employees at Adidas' India tech hub in Gurgaon received on Tuesday (September 15). The layoff announcement left workers facing an uncertain future.

The German sportswear giant, in a major round of layoffs, has slashed roles in its technology team in Gurugram, India. Those affected include software engineers, data scientists and data engineers.

On Wednesday (September 16), Adidas confirmed the job cuts and described it as a "difficult decision"; however, it did not disclose the exact number of employees affected or the scale of the job cuts.

“As part of our ongoing efforts to align our operating model with the evolving needs of the business, we have made the difficult decision to reduce a number of roles within our Technology organisation in India," Adidas said in a statement shared with Wocult.

We take a look.

What happened during the town hall meeting?

Employees came to know about layoffs during the town hall meeting. When the announcement was being made, affected employees were divided into two groups and a few received exit letters on September 15 itself- meaning they were asked to leave the same day, NDTV reported, citing people familiar with the process.

Others were asked to remain with the company until December 15. Their role during the transition is to complete handover responsibilities to colleagues at other technology hubs.

Employees given time until December 15 are told to look for another role within the company. If they are not able to find another position by the given deadline, then December 15 would be their last working day, people familiar with the matter said.

Anything related to the severance package, notice pay and redeployment support could not be confirmed at the time of writing this article.

What did Adidas say?

Adidas confirmed that roles have been slashed in its India technology organisation, though it did not give a specific headcount. The company said that a "difficult decision" was aimed at aligning its technology model with changing business requirements.

According to a Wocult report cited by NDTV, Adidas has initiated significant layoffs at its Gurugram India Tech Hub. The layoffs have affected over 350 employees out of nearly half of its workforce of around 700.

If these numbers hold ground, then the impacted employees roughly stand at 45 to 50 per cent of the hub's workforce.

However, it's pertinent to note that these figures are not verified independently, and the company has not provided any numbers confirming that the layoffs affected 350 or more staff.

Adidas' full statement read: "As part of our ongoing efforts to align our operating model with the evolving needs of the business, we have made the difficult decision to reduce a number of roles within our Technology organisation in India. These changes are intended to simplify parts of our organisation, strengthen critical capabilities, and position adidas for long-term success in a rapidly evolving business and technology environment."

Adding, "We are deeply grateful to our colleagues for their many contributions to adidas. We are committed to supporting affected employees with care, respect, and appropriate transition assistance during this time. India remains a strategically important market for adidas, and our Technology Hub continues to play a critical role in enabling the company's growth, innovation, and digital transformation ambitions."

In its official statement, the company did not confirm the reported figure of 350 or more.

What's next for Adidas' India tech operations

Adidas' Gurugram office comprises a local marketing organisation as well as one of its Global Engineering Tech Hubs, aiming to strengthen its technology and business operations in India.

Adidas launched a Global Business Services centre in Chennai in 2024. According to its website, the firm employs around 650 people across its Gurugram and Chennai hubs.

The latest layoffs are reportedly focusing on the technology department.

It remains to be seen what comes next for employees who have already received exit letters, and those who still have a few months to explore opportunities in the company before leaving on December 15.