Under Armour to Furlough 6,600 U.S. Workers
- Company cites impact from coronavirus pandemic; Furloughs cover employees in retail stores and distribution centers
- Under Armour said board members and executive vice presidents are taking a 25% pay cut during the coronavirus crisis.
The Wall Street Journal, April 3, 2020 1:13 pm ET
- Under Armour Inc. said it is furloughing 6,600 workers at its U.S. retail stores and distribution centers beginning April 12, citing the impact of the coronavirus pandemic.
- Furloughed workers who are eligible for benefits will receive full health benefits for about two months, the company said Friday. Under Armour said its workers who continue to work at its distribution centers during the crisis will receive premium bonuses.
- The furloughs cover 6,000 workers at Under Armour’s full-price and outlet stores as well as about 600 people at its U.S.-based distribution centers. As of December, Under Armour said it had had approximately 16,400 employees, including about 11,300 in its brand and factory stores and 1,500 at its distribution centers.
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- The company’s board members and executive vice presidents are taking a 25% pay cut during the crisis, Under Armour said.
- “This unanticipated shock to our business has been acute, forcing us to make difficult decisions to ensure that Under Armour is positioned to participate in the eventual recovery of demand,” President and Chief Executive Patrik Frisk said, adding that the company has seen signs of recovery in the Asia-Pacific region.
- Under Armour, which withdrew its guidance amid the pandemic’s uncertainty, also said it is evaluating options for its restructuring plan, which the board approved before assessing the effects of the pandemic. It expects to incur pretax restructuring and related costs of $475 million to $525 million in 2020.
- Write to Dave Sebastian at dave.sebastian@wsj.com and Khadeeja Safdar at khadeeja.safdar@wsj.com
Source:
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