Under Armour to lay off 600 employees globally
Sportswear manufacturer Under Armour has confirmed it will lay off approximately 600 employees, as COVID-19 impacts its business financially.
In a US Securities and Exchange Commission filing presented Tuesday, Under Armour said it plans to cut about 600 jobs primarily in its “global corporate workforce.”
The company expects to incur around $235 million in charges, including $135 million for contract termination and other restructuring costs.
The brand also expects to recognise $70 million of facility and lease termination costs and $30 in employee severance in its workforce.
Under Armour said it expects majority of remaining restructuring charges to occur by end of the year.
Last month, the company reported revenue was down by 41% in the second quarter to $708 million, predominantly related to the COVID-19 pandemic impacts in the quarter.
Wholesale revenue decreased by 58% to $299 million and direct-to-consumer revenue was down by 13% to $368 million.
