New Delhi: Adidas has begun cutting jobs at its India Tech Hub in Gurgaon. The layoffs are expected to impact software engineers, data scientists and data engineers working at the German sportswear company’s technology centre. Nearly half of the centre’s workforce of around 700 employees is reportedly affected.
Adidas has confirmed that it is reducing roles within its technology organisation in India, but the company has not disclosed the exact number of job cuts. Employees were informed about the decision during a town hall meeting on September 15. Reports suggest that around 300 to 350 employees could be affected by the restructuring.
The centre has worked on areas involving software development, data science and technology services. The company added, “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. “We are deeply grateful to our colleagues for their many contributions to adidas. It also emphasised that the importance of its India operations. The second group has been asked to continue working until December to complete handovers and transfer responsibilities to other employees. The exact terms offered to the affected staff have not been made public. The job cuts have affected several technology roles, including software engineering, data science and data engineering. These roles support Adidas’ digital systems and technology operations.
The layoffs have come at the Gurgaon facility that Adidas launched in 2021 to attract technology and engineering talent for its products and digital operations. One group reportedly received exit letters on September 15, the same day the town hall meeting was held.
In a statement, the company described the workforce reduction as a “difficult decision”. It said the changes are part of its efforts to align its operating model with the changing needs of the business. “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. It said it is grateful to employees for their contributions and will provide support during the transition. We are committed to supporting affected employees with care, respect and appropriate transition assistance during this time,” the company said. “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,” it added. People familiar with the matter said employees affected by the layoffs were divided into two groups.
The Gurgaon hub was established in 2021. The impact is less than 20 per cent of its India technology organisation, while the company’s website lists nearly 650 employees across its technology hubs in Gurgaon and Chennai, according to Reuters.
