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Under Armour laying off thousands of U.S. store, distribution workers

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Posted at 12:26 PM, Apr 03, 2020
and last updated 2020-04-03 12:30:55-04

BALTIMORE — Under Armour is temporarily laying off workers at their regular apparel and outlet stores, as well as about 600 employees working at U.S.-based distribution centers.

The company made the announcement on Friday and said the layoffs are effective April 12.

Workers remaining at the distribution centers during the COVID-19 pandemic will begin receiving premium bonuses, according to the company.

Under Armour says they will cover two months of full health benefits for eligible workers affected by the lay-offs.

All of the company's Executive Vice Presidents and above along with the Board of Directors will take a 25 percent cut in pay until the outbreak ends.

On March 31, Under Armour's Board of Directors approved a 2020 restructuring plan, which was developed before the COVID-19 pandemic strcuk.

As part of the restructuring plan, the company expects to incur total estimated pre-tax restructuring and related charges in the range of $475 million to $525 million during 2020 including:

$55 million in facility and lease termination costs, $25 million in employee severance and benefit costs, and $95 million in contract termination and other restructuring costs, $290 million related to the company's New York City flagship store, and $60 million of intangibles and other asset related impairments.

As a result of ongoing disruption and uncertainty related to the global COVID-19 pandemic, Under Armour has withdrawn its first quarter and full-year 2020 outlook provided on February 11, 2020 and will not offer an updated outlook at this time.

All Under Armour stores remain closed indefinitely amid the virus.