Under Armour plans 600 layoffs amid COVID-19 - Technical.ly Baltimore

Growth

Sep. 9, 2020 8:39 am

Under Armour plans 600 layoffs amid COVID-19

The Baltimore-based sports apparel company said the layoffs are mostly to its corporate workforce.
Under Armour headquarters in Baltimore.

Under Armour headquarters in Baltimore.

(Photo by Flickr user University of Delaware Alumni Relations, used under a Creative Commons license)

Under Armour disclosed plans to lay off 600 employees Tuesday as part of the fallout from the COVID-19 pandemic.

The Baltimore-based athletic apparel company made the disclosure in a filing with the U.S. Securities and Exchange Commission on Tuesday, saying that the layoffs would come “primarily in its global corporate workforce.” The company didn’t disclose whether or how many employees in Baltimore would be affected.

The filing was an update to an already-ongoing restructuring plan for 2020 that was initially made before considering COVID-19 considerations. In the original plan, the company said it expected to incur charges of approximately $475 million to $525 million total, with $340 million in charges incurred through the first half of the year. On Sept. 3, the company’s board approved another $75 million in restructuring charges.

The layoffs represent the latest cuts at the company that is Baltimore’s largest and most prominent brand to be founded in the last few decades. Under Armour has had a series of restructuring moves in the last three years as it has sought to regain sales footing from a string of quarterly losses that began in 2017. This is the largest announced round of layoffs, following 280 in 2017 that included 140 job losses in Baltimore,¬†and 400 in 2018 that included 50 people who lost their jobs in Baltimore.

The pandemic has brought new struggles. In the initial weeks of stringent public health restrictions, the company had to close retail stores for a time as the coronavirus shut down in-person activities and initially furloughed 6,600 employees, though many stores have since reopened gradually. It was also reportedly seeking a buyer for its digital fitness app.

Advertisement

In all, the company said it is expecting to incur $30 million in severance and benefit charges related to the latest round of layoffs.

Companies: Under Armour
-30-
CONTRIBUTE TO THE
JOURNALISM FUND

Already a contributor? Sign in here
Connect with companies from the Technical.ly community
New call-to-action

Advertisement

Sign-up for daily news updates from Technical.ly Baltimore

Do NOT follow this link or you will be banned from the site!