The sportswear company will lay off around 400 employees in the next few months. The reduction of personnel will be completed by March 2019 and it will involve additional restructuring costs of ten million dollars (8.56 million euros).
Under Armour reduces its global workforce amid restructuring. The American sportswear company will lay off around 400 employees worldwide, which represents 3% of its workforce. The group expects to complete the process by March 2019 and it will incur in additional costs of ten million dollars (8.56 million euros).
For full fiscal 2018, Under Armour expects pre-tax restructuring costs ranging from 200 million to 220 million dollars (171.2 million and 188.4 million euros). “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 David Bergman, Under Armour’s chief financial officer.
“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,” he added.
Under Armour now forecasts pre-tax restructuring costs of over 200 million dollars (171.2 million euros) in fiscal 2018
Following the dismissals’ announcement, Under Armour has revised its full-year guidance. The company forecasts now to post an operating loss of around 60 million dollars (51.4 million euros). Excluding the restructuring costs’ impact, the group advances an adjusted operating profit ranging from 140 million to 160 million dollars (119.8 million and 137 million euros).
In the first half of fiscal 2018, Under Armour multiplied by ten its losses, reaching 125.8 million dollars (107.7 million euros). Turnover in the same period increased by 6.7% to 2.36 billion dollars (2.02 billion euros).