Under Armour revealed its restructuring plan. As part of this effort, the American sportswear brand announced that it is laying off employees. The footwear manufacturer also said that it is re-prioritizing its core men's apparel business. Here are other details. 

Under Armour is Laying off Employees

Under Armour is Laying off Employees

According to Fox Business' latest report, Under Armour Inc. decided to initiate a restructuring plan because of its mounting losses, which is expected to help it bounce back.

Founder and CEO Kevin Plank said they are implementing new strategies to grow the brand and working on cost management, which includes terminations.

Under Armour didn't confirm the number of employees expected to be affected by the latest layoff. But, the sportswear brand promised to spend $7 to $15 million in severance pay and benefits costs.

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Under Armour Re-Prioritizes Core Men's Apparel

In addition to the layoff, Under Armour said that it is refocusing on its core men's apparel business. Kevin Plank admitted that the sportswear company took its "eyes off" this business.

However, he said that the company's loss of focus on core men's apparel still benefited it. It allowed Under Armour to become more promotional and commoditized, particularly in North America.

The layoff and re-prioritization of core men's apparel came as the manufacturer announced its sales drop in its largest market, North America. CNBC reported that the company's sales dropped by 10%.

Analysts now predict Under Armour's sales decline trend could worsen throughout its current fiscal year.

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