Un­der Ar­mour Slashes 400 Jobs

Shoes & Accessories - - The Month That Was -

Un­der Ar­mour is slash­ing hun­dreds of jobs in a con­tin­ued ef­fort to curb costs. The lay­offs will im­pact 3 per­cent of its work­force, or around 400 em­ploy­ees. The move is part of a broader re­struc­tur­ing ef­fort that ex­ec­u­tives say will cost between $ 200 mil­lion to $ 220 mil­lion, up from a prior es­ti­mate of $ 190 mil­lion to $ 210 mil­lion, due to about $ 10 mil­lion in sev­er­ance charges.

Un­der Ar­mour’s for­tunes have soured since 2016: Af­ter nearly seven years of dou­bledigit growth, it’s posted sev­eral quar­ters of losses and faces stiff com­pe­ti­tion from Nike and Adi­das, its decades-older coun­ter­parts. De­spite buzzy col­lab­o­ra­tions and a re­cent sales re­bound in the U.S., it has been crit­i­cized by some whole­sale part­ners and in­vestors who say it has ex­panded dis­tri­bu­tion to too many re­tail­ers, thereby di­lut­ing the brand. It is also the sub­ject of sev­eral on­go­ing law­suits filed on be­half of in­vestors that claim CEO Kevin Plank and other ex­ec­u­tives mis­led share­hold­ers about the com­pany’s fi­nan­cial out­look in 2016.

In Au­gust of last year, the com­pany said it would lay off 280 em­ploy­ees, half of which ef­fec­tive im­me­di­ately. The new­est round of cuts, which will be com­pleted by March of next year, brings the to­tal to close to 700, from a work­force of 15,000.

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