Adidas Layoffs: 50 Percent Staff Cut At Gurgaon India Tech Hub

Adidas has laid off nearly 50 percent of its workforce at its India Tech Hub in Gurugram. The decision was announced during an emergency Town Hall meeting on September 15, affecting software engineers, data scientists, and data engineers as part of a strategic realignment.

In a significant development within the global sportswear industry, Adidas has implemented a massive layoff at its India-based technology operations. The company's Gurugram office, which serves as a critical tech hub, witnessed a major reduction in its workforce following an emergency Town Hall meeting held on September 15. During this meeting, employees were informed of the difficult decision and were subsequently handed their exit letters, marking a turbulent phase for the tech sector in India.

Massive Workforce Reduction in Gurugram

The Adidas India Tech Hub in Gurugram currently employs approximately 700 professionals. According to reports and internal sources, the layoffs have impacted between 45 to 50 percent of the total staff. While the exact number of affected employees has not been officially confirmed by the company, the scale of the reduction suggests that nearly half of the workforce is being let go. Adidas has chosen not to make the specific figures public at this stage, but the impact is felt across the entire facility.

Affected Roles and Departments

The layoffs have primarily targeted the technology division of the company. The affected personnel include a wide range of technical roles such as software engineers, data scientists, and data engineers. These professionals were integral to the company's digital and technological infrastructure. In a statement provided to Wocult, Adidas confirmed that it has taken the difficult step of reducing several positions within its technology department in India to better align with its future goals.

The Exit Process: Two Distinct Groups

The company has reportedly categorized the affected employees into two distinct groups to manage the transition. The first group was issued exit letters immediately on September 15, marking their final day with the organization. This immediate action came as a shock to many who were part of the emergency meeting.

Employees in the second group have been given a different timeline to ensure a smooth transition of responsibilities. They've been asked to continue their work until December 15. Their primary responsibility during this period is to complete the handover process to other global tech hubs. On top of that, these employees have been granted the opportunity to look for alternative roles within the Adidas organization. However, the company has clarified that if an employee is unable to secure another internal position by December 15, that date will serve as their final working day.

Official Statement from Adidas

Adidas has officially confirmed the reduction of certain positions within its technology organization in India, although it refrained from disclosing the specific headcount. The company explained that this decision was driven by the need to better align its operating model with evolving business requirements. The objective is to simplify certain parts of the organization and strengthen essential capabilities to prepare the company for a rapidly changing business and technology landscape in the long term.

Despite these significant cuts, Adidas emphasized that India remains a strategically important market for the brand. The company stated that the India Technology Hub will continue to play a vital role in its growth, innovation, and digital transformation journey. The move is seen as a strategic realignment rather than a complete withdrawal from the Indian tech landscape, as the company seeks to optimize its global operations.