Adidas has begun a fresh round of layoffs at its India Tech Hub in Gurgaon, with the company saying less than 20% of its India Technology workforce will be affected. The German sportswear giant announced the workforce reduction during a town hall meeting on September 15.
The latest clarification from Adidas comes after earlier reports suggested that as many as half of the employees at the Gurgaon facility could lose their jobs.
The company described the workforce reduction as a “difficult decision” aimed at simplifying parts of its organisation and aligning its technology operations with the changing needs of the business.
Adidas Says Less Than 20% Employees Affected
Adidas confirmed the layoffs in a statement to Hindustan Times, but did not provide an exact number of employees being let go.
People familiar with the matter said software engineers, data scientists and data engineers are among those affected.
The Gurgaon Tech Hub has around 900 employees, according to the report. Earlier reports had suggested a much larger number of employees could be impacted, but Adidas has now clarified that the cuts involve less than 20% of its India Technology organisation.
Employees Given Different Exit Timelines
People familiar with the matter said employees affected by the restructuring have been divided into two groups.
One group received exit letters on September 15, the same day the workforce reduction was announced during the town hall meeting.
The second group is expected to continue working until December 15 to complete the handover of their responsibilities to colleagues.
Gurgaon Tech Hub Launched In 2021
Adidas launched its India Tech Hub in 2021 to attract and develop technology and engineering talent for its products and digital operations.
The facility has since played a role in the company’s technology, innovation and digital transformation efforts.
Despite the layoffs, Adidas said India remains a strategically important market.
Adidas Says Several Jobs Remain Open
Adidas said the restructuring is part of its efforts to align its operating model with the evolving needs of the business.
The company said the changes are intended to simplify its organisation, strengthen critical capabilities and support its long-term goals in a rapidly changing business and technology environment.
At the same time, Adidas said it continues to have “several open roles” across the organisation.
The company encouraged affected employees to explore these opportunities as it continues to build the skills and expertise it needs for the future.
Adidas Says India Remains Strategically Important
Adidas said it remains committed to supporting employees affected by the restructuring through transition assistance.
The company also reiterated that its India Technology Hub continues to play a role in supporting its growth, innovation and digital transformation ambitions.
The latest announcement therefore combines workforce reduction in some technology roles with continued hiring in selected areas, as Adidas adjusts its India technology organisation to its evolving business requirements.
