Under Armour announced today it will lay off 400 employees, or about 3 percent of its total workforce, as the sports apparel company updates a restructuring plan enacted earlier this year.
The Baltimore-based company said in February it eventually expected to save $75 million annually after retooling. In a statement released today, Under Armour chief financial officer David Bergman said the reductions will make the company more efficient.
“In our relentless pursuit of running a more operationally excellent company, we continue to make difficult decisions to ensure we are best positioned to succeed,” he said. “This redesign will help simplify the organization for smarter, faster execution, capture additional cost efficiencies, and shift resources to drive greater operating leverage as we move into 2019 and beyond.”
Under Armour will spend $10 million in severance, and the company expects to complete the layoffs by March 31, 2019.
A company spokesperson said Under Armour is not providing specifics about how many jobs in the Baltimore area may be eliminated.
“Baltimore has been the bedrock of our winning brand and we are deeply committed to the city we call home,” the spokesperson said in an email. “This community is a key to the innovation that will allow us to reimagine the future. Through this transition, we will be approaching every teammate with the utmost care and respect, but these are necessary steps to become a more operationally excellent company.”
The restructuring plan will now cost an estimated $200 million to $220 million, the company said. When the overhaul was first announced in August 2017, the company announced layoffs for 2 percent of its workforce and put the cost of restructuring between $110 million and $130 million.
Following years of rapid growth, the apparel company founded by Kevin Plank has receded in recent years as it has seen sales figures fall. Plank stepped down as president in 2017 but remained on as CEO.
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