Under Armour to slash jobs, updates turnaround plan

9/20/2018
An athletic gear and apparel brand is updating its turnaround plan, a move that will result in the loss of some jobs around the globe.

Under Armour, which is in the midst of a turnaround plan to pump up sales, said Thursday that will cut approximately 400 jobs, or 3% of its global workforce. The cuts, which will be complete by March 31, will equate to approximately $10 million in cash severance charges.

The decision represents the final component and update to the company's 2018 restructuring plan, according to Under Armour.

“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,” said Under Armour CFO David Bergman. “This redesign will help simply the organization for smarter, faster execution, capture additional cost efficiencies, and shift resources to drive grater operating leverage as we move into 2019 and beyond.”

In addition to the job cuts, the company updated its expectations for the turnaround plan. The company now expects an operating loss of approximately $60 million compared to the previous range of $50 million to $60 million. Excluding the impact of the restructuring, adjusted operating income is now expected to be $140 million to $160 million, compared to the prior expectation of $130 million to $160 million.

In addition, adjusted diluted earnings per share are expected to be in the range of 16 cents to 19 cents, compared to the previous expected range of 14 cents to 19 cents.
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