Under Armour plans layoffs as part of restructuring to mitigate declining sales

[Jobhunter]

 

Under Armour, the renowned sportswear company, has recently announced a significant restructuring plan. This plan includes layoffs, a 25% reduction in product offerings, and a renewed focus on its historic strength in menswear. The company’s decision comes amidst declining sales and is seen as a proactive measure to build a premium positioning for the brand.

 

The restructuring plan was unveiled by Kevin Plank, the company’s CEO, during the announcement of the brand’s fourth-quarter earnings. The plan is expected to be painful in the short term, with pre-tax restructuring charges estimated to be between $70 million and $90 million. However, the company believes that this move will help align their expenses with their next chapter of growth.

 

Under Armour’s revenue dipped by 5% worldwide, with a 10% decrease in sales in North America. Despite these challenges, the company remains optimistic about its future. It is focusing on driving demand through better products and storytelling, simplifying its operating model, and elevating its consumer experience.

 

The company has not specified the number of positions that will be affected by the layoffs. However, it is said that the restructuring will impact every part of the company. The company also plans to cut down on promotions and discounts to help reduce costs.

 

As we watch this story unfold, one can’t help but wonder: How will these changes impact Under Armour’s position in the sportswear market? Will this restructuring plan lead to a stronger, more focused Under Armour? We invite you to share your thoughts on this topic.

 

 

Read more:

• https://about.underarmour.com/content/ua/about/en/stories/press-releases/release.24181.html
• https://wwd.com/business-news/financial/under-armour-restructuring-plan-layoffs-product-reduction-less-promotions-1236384142/
• https://www.retaildive.com/news/under-armour-layoffs-product-strategy-cutting-sku-count/716318/
• https://frontofficesports.com/under-armour-layoffs-restructuring/

 

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