Under Armour Layoffs Set Company up for Major Restructuring, Says CEO

Under Armour is undergoing a restructuring of its business plan due to a decrease in revenue, which will involve laying off an undisclosed number of employees.

Founder and CEO Kevin Plank addressed this shift in a conference call with investors and analysts, stating, “This is not where I envisioned Under Armour playing at this point in our journey. That said, we’ll use this turbulence to reconstitute our brand.”

In a press release, Plank explained that the company is taking proactive steps to enhance its brand positioning, despite facing challenges like lower wholesale demand and inconsistent business execution.

The board of directors has approved a plan to strengthen the company’s financial and operational sectors, which is expected to incur restructuring charges of approximately $70 to $90 million.

Plank aims to increase revenue and profit, bolster Under Armour’s brand strength, and reduce promotions in the direct-to-consumer business over the next 18 months.

In March 2024, it was announced that Plank would return as president and CEO, succeeding Stephanie Linnartz. Plank emphasized the company’s efforts to navigate post-pandemic challenges and make strategic business decisions for future growth.

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