Under Armour Cutting Almost 300 Jobs
It seems Under Armour has been struggling of late, but this news from Fortune is still surprising. The sporting goods company announced it was cutting 2 percent of its global workforce, which equates to about 280 jobs.
The retailer also announced it expects to see slower revenue growth this fiscal year, as a result of a competitive and oversaturated environment in retail. Not only that, but Under Armour's footwear sales slipped, which was always an area for growth for the company. The footwear sales decline has its investors worried, and Under Armour CEO Kevin Plank recently announced a restructuring aimed at making better use of its operations. So, it seems there's a lot up in the air for the company.
In terms of the layoffs, the company said about half of the job cuts would be at Under Armour's Baltimore headquarters.
In comparison to the other major players in the sports gear arena, Nike has also announced job cuts in the recent months. Adidas, on the other hand, has raised its own sales forecasts. There's no concrete reason Adidas has managed to edge out the competition in the marketplace, but at least there's still profits to be made in the sports apparel market.