(Photo by Flickr user @shell24_7, used under a Creative Commons license)
Under Armour is planning about 400 layoffs as part of an update to its restructuring plan announced on Thursday.
The Baltimore-based apparel company said it is making a 3-percent reduction to its workforce globally, with layoffs expected to be completed by March 31, 2019. The company did not release further details on how many layoffs would come at its Baltimore headquarters.
“Baltimore has been the bedrock of our winning brand and we are deeply committed to the city we call home,” a spokesperson said in a statement. “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 company said it expects $10 million in cash severance charges as a result of the changes. Under Armour has about 15,000 employees worldwide, about 3,500 of which are in Baltimore.
Under Armour announced a second restructuring plan in February that was designed to save money and change processes as it looks to overcome sales struggles. The company now expects an operating loss of $60 million, with restructuring costing $200 million to $220 million.
“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,” CFO David Bergman said in a statement.
In Baltimore, the company has previously announced long-term plans for a new campus in Port Covington, and a distribution center at Tradepoint Atlantic in Sparrows Point that was projected to employ 1,000 people.
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