Adidas Restructures India Tech Operations
Sportswear giant Adidas has reportedly initiated significant layoffs, impacting almost 50% of its workforce at the Global Engineering Tech Hub in Gurugram, India. Approximately 350 employees, including software engineers, data scientists, and data engineers, have been let go as part of a broader restructuring effort within the company's technology organization.
Employees received the news during a townhall meeting held on September 15. The affected staff were divided into two groups: some received immediate exit letters, while others were instructed to remain with the company until December 15. This second group is tasked with completing essential handovers to colleagues at other global tech hubs and has been advised to seek alternative roles within this period.
Company Statement and Future Outlook
In a statement, Adidas indicated that these changes are part of ongoing efforts to "align our operating model with the evolving needs of the business." The company aims to simplify its organizational structure, strengthen critical capabilities, and ensure long-term success in a dynamic business and technology environment. Details regarding severance packages, notice pay, or redeployment support for the affected employees have not yet been disclosed.
Despite the layoffs, Adidas reaffirmed India's strategic importance as a market. The company emphasized that its Technology Hub in Gurugram will continue to play a crucial role in supporting Adidas' growth, innovation, and digital transformation ambitions globally.
The India Tech Hub's Background
The Gurugram office, which houses both Adidas' local marketing organization and one of its Global Engineering Tech Hubs, was established in 2021. Its primary objective was to attract and cultivate top technology and engineering talent in India to contribute to Adidas' product development and digital initiatives. In recent years, Adidas has also expanded its presence in India, including the opening of a Global Business Services centre in Chennai in 2024.