In the wake of a second consecutive quarterly loss, albeit one that was smaller than originally forecast, struggling athletic apparel company Under Armour announced Tuesday that it is laying off 2 percent of its 15,000 employees worldwide, or about 280 people, as part of a restructuring plan.
As laid out by Yahoo Finance, the company’s struggles also were the result of an overreliance on basketball footwear, struggles at its brick-and-mortar stores and its failure to embrace fashion trends, as surging Adidas has.
In an earnings call, Plank said the athletic apparel and footwear company will now focus on five areas — men’s training, women’s training, running, baseball and lifestyle — as part of its reorganization, which will cost the company $110 million to $130 million in lease terminations, employee severance and contract terminations this fiscal year. The company also says it will pivot from selling predominantly men’s apparel “to distinct collections for men, women and kids.”
Under Armour's Kevin Plank says company will focus more on $80 to $100 price point on shoes, but will continue high end (Curry, C1N)— Darren Rovell (@darrenrovell) August 1, 2017
It’s the second round of layoffs for the Baltimore-based company this year. In April, it laid off around 24 employees — most of them based in Copenhagen — in its Connected Fitness unit. Half of the people laid off after Tuesday’s announcement will come from its Baltimore headquarters, CNBC reports.