The layoffs, which come from the Under Armour’s workforce of about 13,800, will be completed by the end of March and will mark the end of the company’s restructuring.
Investors, which often applaud cost-cutting measures, approved of the move and sent shares of Under Armour up 4.8 percent to $18.11 in midday trading Thursday.
The workforce cuts will lead to about $10 million in cash severance charges, boosting the estimate for total pretax restructuring charges this year to a range of $200 million to $220 million, up from $190 million to $210 million.
“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 David Bergman, chief financial officer. “This redesign will help simplify the organization for smarter, faster execution, capture additional cost efficiencies, and shift resources to drive greater operating leverage as we move into 2019 and beyond.”
The company also tightened its projections for earnings per share this year and is now targeting adjusted earnings per share of 16 cents to 19 cents, up from the 14 cents to 19 cents.