Under Armour is slashing hundreds of jobs in a continued effort to curb costs, the company announced Thursday.
The layoffs, which will impact 3 percent of its workforce, or around 400 employees, are part of a broader restructuring effort that executives say will cost between $200 million to $220 million, up from a prior estimate of $190 million to $210 million, due to about $10 million in severance charges.
Under Armour’s fortunes have soured since 2016: After nearly seven years of double-digit growth, it’s posted several quarters of losses and faces stiff competition from Nike and Adidas, its decades-older counterparts. Despite buzzy collaborations and a recent sales rebound in the U.S., it has been criticized by some wholesale partners and investors who say it has expanded distribution to too many retailers, thereby diluting the brand. It is also the subject of several ongoing lawsuits filed on behalf of investors that claim CEO Kevin Plank and other executives misled shareholders about the company’s financial outlook in 2016.
In August of last year, the Baltimore-based company said it would lay off 280 employees, half of which effective immediately. The newest round of cuts, which will be completed by March of next year, brings the total to close to 700, from a workforce of 15,000.
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Under Armour also announced that it expects full-year profits of between 16 and 19 cents per share, up from a prior outlook of 14 to 19 cents. Its shares were up nearly 5 percent as of 10:30 a.m. EST.