Under Armour layoffs ahead, with about 400 workers' jobs to be cut
BALTIMORE -- Under Armour will cut its workforce by 3 percent by the end of March as the athletic apparel company continues to chop costs and restructure its global operations, the company said on Thursday.
The job reductions amount to "roughly 400 employees," an Under Armour spokesperson told CBS MoneyWatch in an email.
The Baltimore company said it now anticipates restructuring-related charges this year of between about $200 million and $220 million, up from prior projected restructuring charges between $190 million to $210 million. The increased costs are due to about $10 million in severance charges, Under Armour said in a news release.
"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," David Bergman, the company's CFO, said in the release.
Excluding those costs, Under Armour Inc. expects full-year profits of between 16 and 19 cents per share. Its prior outlook was for 14 to 19 cents per share. Analysts polled by FactSet expect earnings of 16 cents per share.
Under Armour eliminated nearly 300 jobs in 2017 as it consolidated operations.
Shares rose 3.4 percent just after the opening bell.