Layoffs at Adidas: Nearly half of 700 employees at Gurgaon tech hub could lose their jobs

New Delhi: Adidas has begun cutting jobs at its Indian technology hub in Gurgaon. It is reported that almost half of the center’s staff of about 700 people were affected. The layoffs are expected to impact software engineers and data scientists working at the German sportswear company’s technology center.

Employees were informed of the decision at a town hall meeting on Sept. 15. The restructuring could reportedly affect between 300 and 350 employees. Adidas has confirmed it is cutting roles in its technology organization in India, but the company has not disclosed the exact number of cuts.

The layoffs took place at Adidas’ Gurgaon plant, which Adidas opened in 2021 to attract technology and engineering talent for its products and digital operations. The center worked in areas related to software development, data science and technology services.

In a statement, the company called the workforce cuts a “difficult decision.” The company said the changes are part of its efforts to align its operating model with changing business needs.

“As part of our ongoing efforts to align our operating model with changing business needs, we have taken the difficult decision to eliminate a number of roles across our technology organization in India,” Adidas said.

The company added: “These changes are designed to simplify parts of our organization, strengthen critical capabilities and ensure Adidas’ long-term success in a rapidly evolving business and technology environment.”

The company said it is grateful to employees for their contributions and will provide support during the transition.

“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 assistance during this transition,” the company said.

He also emphasized the importance of its operations in India. “India remains a strategically important market for Adidas and our technology center continues to play a critical role in driving the company’s growth, innovation and digital transformation ambitions,” the company added.

People familiar with the situation said the employees affected by the layoffs were divided into two groups. One group reportedly received exit letters on Sept. 15, the same day as the town hall meeting.

The second team was asked to continue until December to complete the handover and transfer responsibilities to other staff. The exact terms offered to affected personnel were not disclosed.

The job cuts affected several technology roles, including software development, data science and data engineering. These roles support Adidas’ digital systems and technology operations.

The Gurgaon center was established in 2021. Its influence is less than 20 percent of its technology unit in India, according to Reuters, while the company’s website lists about 650 employees at its technology centers in Gurgaon and Chennai.