Under Armour to Cut 3% of Workforce
Under Armour said Thursday its restructuring program will now cost more than it previously expected: it plans to cut about 400 jobs, or about 3 percent of its global workforce, by March. Under Armour said it now sees costs in the range of $200 million to $220 million tied to the restructuring effort, up from a prior forecast of $190 million to $210 million, due to about $10 million in severance charges. The company also raised the lower end of its fiscal 2018 earnings forecast.
Total Retail's Take: The athletic brand has struggled to maintain the momentum it created when it burst onto the scene with skyrocketing sales and growth. The crowded athletic apparel and footwear category, which includes the likes of Nike and Adidas, has proven to be a challenge for Under Armour to grow marketshare in. While Under Armour has struggled to grow sales in the U.S., the brand has seen its international revenues grow double-digits in the past year. A slimmed-down workforce and further investments in growing its international business figures to be Under Armour road back to increased sales and profits.