Adidas India layoffs: Why software engineers and data scientists are losing jobs as Gurugram tech hub is reshaped

Adidas is cutting jobs from its technology organisation in India, putting software engineers, data scientists and data engineers among the roles affected in a restructuring that the company says is aimed at changing how its technology operations are organised.

The German sportswear giant has confirmed that it is reducing a number of positions within its India Technology organisation, but has not publicly disclosed the exact number of employees affected. Reports based on people familiar with the situation have put the figure at around 350 employees at the Gurugram tech hub, nearly half of its reported workforce of about 700. Adidas, however, has not confirmed that figure.

The scale of the reported cuts has drawn attention because the affected workforce includes specialised technology roles rather than only administrative positions. The development raises a larger question about the kind of technology work global companies are choosing to retain as they reorganise their operations.

Why is Adidas cutting technology roles in India?

Adidas says the decision is part of an effort to bring its operating model in line with changing business requirements.

In its statement, the company said it wants to simplify parts of its organisation, strengthen critical capabilities and prepare the business for changes in the technology environment.

That explanation is important because the company has not described the move as a withdrawal from technology in India. Instead, Adidas has framed the restructuring as a change in the composition and organisation of its technology workforce.

Reuters reported that Adidas said the impact across its India Technology organisation was less than 20%.

Why are software engineers and data specialists among those affected?

The reported layoffs include software engineers, data scientists and data engineers, roles that are typically associated with the technology infrastructure behind a large global consumer brand.

The cuts therefore appear to be less about eliminating technology functions altogether and more about deciding which capabilities, teams and roles fit the company's revised operating model.

Adidas has specifically said it wants to strengthen critical capabilities while simplifying parts of the organisation. That suggests that some technology functions are being prioritised even as other positions are removed, although the company has not publicly identified which specific capabilities will receive greater investment.

What happened to employees at the Gurugram tech hub?

Employees were informed about the restructuring during a town hall on September 15, according to reports.

The affected workers were reportedly split into two groups. Some received exit letters on the same day, while others have been asked to continue working through December to complete handovers to colleagues at other Adidas technology hubs.

Those employees have also reportedly been given time to explore other positions within Adidas. Workers who do not secure another role are expected to leave the company by December 15, according to the reports.

Details of individual severance packages, notice pay and redeployment arrangements have not been confirmed publicly.

Adidas is still expanding its India operations

The layoffs come despite Adidas maintaining a technology presence in India.

The Gurugram location houses Adidas' local marketing organisation as well as one of its Global Engineering Tech Hubs. The company has also expanded its Indian operations, including the opening of a Global Business Services centre in Chennai in 2024.

That makes the current restructuring different from a simple closure of Adidas' technology operations in India. The company says India remains strategically important, while its technology organisation is being reshaped around what it describes as critical capabilities and changing business requirements.

For employees in Gurugram, however, the immediate impact is substantial. A section of the workforce has already received exit communication, while others now have a limited window to complete handovers or find another role within the company.