Under Armour is laying off employees.
The Baltimore, Md.-based company confirmed to Footwear News that it has cut 50 roles across various units in its corporate workforce. The cuts were made to help the company reduce expenses and move towards profitability as part of a new stage of growth, the company said in a statement.
“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.”
The impacted employees will receive severance, healthcare benefits and career support, Under Armour said.
The news comes as Under Armour, helmed by a new CEO, rolls out a plan to revamp its business via its Protect This House 3 (PTH 3) plan, which focuses on reinvigorating brand DNA, focusing on key product areas and growing business in North America.
“While these priorities are clear, they are at a starting point, and we have just begun thinking about how we can make UA better,” said Under Armour chief Stephanie Linnartz in a call with analysts in May. Linnartz took the helm at Under Armour this past winter as the company’s first woman CEO.
In its Q4 results reported in May, Under Armour reported that adjusted earnings per share came in at 18 cents, 3 cents ahead of the 15 cents analysts projected on average, according to FactSet. Revenues rose 7.5 percent to $1.4 billion from $1.3 billion. The company offered weak guidance for fiscal 2024, with Linnartz laying out the plan to reshape the brand.
“We know there is much work ahead of us and that we must move with urgency,” she said, describing fiscal 2024 as a “year of building as we lay the groundwork aligned with our priorities.”
With news of the cuts, Under Armour has become the latest retailer to reduce staff amid a turbulent retail environment. Since the start of 2023, REI, Amazon, Bolt, Everlane, Kohl’s, Saks, Wolverine, David’s Bridal, Gap and more retail and technology companies have announced major cuts across their workforces.
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