Under Armour will lay off about 6,700 employees temporarily because of a significant drop in sales during the coronavirus pandemic.
The Baltimore-based athletic apparel maker said Friday it will temporarily lay off employees, starting April 12, at its full-price and outlet stores and its U.S. distribution centers, including warehouse and distribution centers in Sparrows Point and Curtis Bay.
“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," said Patrik Frisk, CEO and president, in Friday’s announcement. “We do not take these decisions lightly and are doing all we can to minimize the impact on our teammates during this time.”
The layoffs include about 600 people who work at distribution centers. Under Armour owns and operates 188 stores in North America, which remain closed until further notice, affecting more than 6,000 workers.
The company’s board also approved a restructuring plan to improve future profitability and cash flow.
"Because of the strength of our brand and the steps we have taken, we will weather this storm,” Frisk said.
The company said it will start paying premium bonuses to distribution center workers who continue to work during the crisis.
Under Armour shares rallied Friday, rising almost 5.7% to close at $8.22 each.