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(Lead image via Portland Monthly)
Under Armour announced that it will be laying off corporate employees, per Footwear News. The Baltimore-based company has made the decision to lay off employees in an effort to reduce expenses and drive profitability during a new phase of growth.
Under Armour made the difficult decision to eliminate certain corporate roles across several functions in the business,” the company said in a statement. “We sincerely appreciate the commitment and contributions these teammates made and are supporting them during this transition.
-Official Statement from Under Armour
Under Armour confirmed that 50 roles across various units in its corporate workforce have been cut. This development aligns with Under Armour’s strategic plan, known as Protect This House 3 (PTH 3), which aims to revitalize its brand DNA, focus on key product areas, and drive business growth in North America.
Under Armour’s CEO, Stephanie Linnartz, who assumed her role as the company’s first woman CEO in the past winter, emphasized that these priorities mark the starting point of their efforts to enhance Under Armour.
During a call with analysts in May, Linnartz expressed the company’s commitment to making UA better saying, “While these priorities are clear, they are at a starting point, and we have just begun thinking about how we can make UA better.”
Under Armour’s Q4 results which were reported in May, exceeded expectations with adjusted earnings per share of 18 cents, surpassing the average projection of 15 cents according to FactSet. Revenues also increased by 7.5 percent to $1.4 billion from $1.3 billion. Even with positive results in the background, the company provided cautious guidance for fiscal 2024 and is doing what is necessary to reshape the brand.
The recent layoffs at Under Armour reflect the challenges faced by retailers in the current turbulent retail environment. Several other retail and technology companies, including REI, Amazon, Bolt, Everlane, Kohl’s, Saks, Wolverine, David’s Bridal, and Gap, have also announced significant workforce reductions since the beginning of 2023.
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