Adidas Cuts Half Its India Tech Staff to Streamline Operations
Adidas has initiated a major restructuring at its Gurugram technology hub, eliminating nearly half of the local workforce to align its operating model with shifting business needs and long-term strategic goals.
Adidas has confirmed the start of significant layoffs at its India Tech Hub in Gurugram, affecting an estimated 350 to 400 employees out of a total local workforce of approximately 700. The company described the move as a difficult but necessary decision to simplify its organizational structure and strengthen critical capabilities. Employees in roles such as software engineering, data science, and data engineering were informed of the cuts during a town hall meeting on September 15.
According to reports from GN auto stocks/software: tech layoffs, the reduction is part of a broader effort to align the operating model with changing business requirements. Adidas stated that these changes are designed to position the company for long-term success as the technology landscape evolves. Despite the headcount reduction, the company maintains that India remains a strategically important market, with the Gurugram hub continuing to support global growth, innovation, and digital transformation initiatives.
Two-Phase Exit Strategy Deployed
The company structured the departures into two distinct groups to manage operational continuity. The first group received termination letters immediately on September 15. The second group was instructed to remain on the payroll until December 15, a period designated for completing handovers to colleagues at other global tech hubs.
During this three-month transition window, affected employees are permitted to seek alternative employment within the company. Those who secure a new role will be redeployed; however, if no suitable position is found by the deadline, their employment will conclude on December 15. Specific details regarding severance packages, notice pay, or additional redeployment support have not yet been publicly disclosed.
Broader Industry Restructuring Trend
Adidas is part of a wider trend of technology-related job cuts across India in 2026. This acceleration is driven by enterprise restructuring around artificial intelligence, automation, and a strategic shift of capital toward cloud infrastructure. Routine coding roles are increasingly being replaced by automated workflows, leading to headcount compression in major IT firms.
Other global technology firms, including Oracle, PayPal, Amazon, and Meta, have implemented similar reductions affecting thousands of roles in cities like Bengaluru and Hyderabad. This collective shift reflects a sector-wide move to optimize costs and leverage AI-driven efficiencies, impacting both mid-level and senior staff across the region.
Strategic Focus On Digital Transformation
The Gurugram office houses key local marketing functions and serves as one of Adidas’ Global Engineering Tech Hubs. The company has continued to expand its presence in the region, including the opening of a Global Business Services centre in Chennai in 2024. The current restructuring aims to refine these capabilities, ensuring that remaining resources are concentrated on high-impact digital and innovation projects.
By streamlining its technology organization, Adidas intends to enhance its competitive positioning in the evolving business environment. The company asserts that this focus on critical capabilities will support its long-term strategic objectives, maintaining India’s role as a vital hub for its global digital transformation efforts despite the immediate reduction in headcount.
