Under Armour is set to begin a global restructuring, which will see about 600 of its employees laid off. The move from the sportswear company comes in response to the ways its business has been affected by the Coronavirus pandemic and subsequent lockdown measures across the world.
Overall, Under Armour believes that the move will result in around $235 million USD in charges, with $135 millon USD for contract termination along with other restructuring costs. The Baltimore-based brand also raised its restructuring cost for the year to between $550 million and $600 million USD, an increase of $75 million USD.
The news is the second round of cuts from Under Armour this year. Back in April, the company temporarily laid off around 600 workers who were employed at it’s distribution centers across the U.S. Additionally, Under Armour has been anticipating a hit from Coronavirus since February, when shares fell as the pandemic spread across the world.
In other business news, Guess’ revenue dropped by 42% in the second quarter of 2020.