Under Armour to cut 3 percent of its global workforce
By Prachi Singh
20 Sep 2018
Updating its outlook for 2018, Under Armour, Inc. has said that it has identified approximately 10 million dollars of cash severance charges related to an approximate 3 percent reduction in its global workforce. Accordingly, it now expects approximately 200 million dollars to 220 million dollars of pre-tax restructuring and related charges to be incurred in 2018. Previously, it expected to incur total estimated pre-tax restructuring and related charges of approximately 190 million dollars to 210 million dollars in connection with its 2018 restructuring plan.
"In our relentless pursuit of running a more operationally excellent company, we continue to make difficult decisions to ensure we are best positioned to succeed," said Under Armour Chief Financial Officer David Bergman in a statement.
Following the restructuring plan, Under Armour now expects operating loss to be approximately 60 million dollars versus the previous range of 50 million to 60 million dollars. Excluding the impact of the restructuring plan, adjusted operating income is now expected to be 140 million dollars to 160 million dollars versus the prior expectation of 130 million to 160 million dollars. Excluding the impact of the restructuring efforts, the company added, adjusted diluted earnings per share is now expected to be in the range of 0.16 cents to 0.19 cents versus the previously expected range of 0.14 cents to 0.19 cents.
Picture:Under Armour website