PORTLAND, Ore. — Columbia Sportswear CEO Tim Boyle said on Thursday that the company expects to complete a round of layoffs by the end of March due to market challenges.
On a call with investors, Boyle said the company will reduce its U.S. personnel costs by 3% to 5%, primarily impacting corporate workers.
"Our overall headcount and personnel expenses have outpaced the growth of our business," Boyle said on the call.
Columbia employs 9,450, including 3,140 at its corporate headquarters in Washington County, The Oregonian reported.
Boyle said Columbia's layoffs are the result of an earnings report that came up short of expectation for sales and profits, which he expects to continue through 2024.
In the fourth quarter, Columbia reported $1.06 billion in sales, a 9% loss compared to last year.
"Looking ahead, we expect 2024 to be a challenging year. Retailers are placing orders cautiously and economic and geopolitical uncertainty remains high," Boyle said.
The company is looking to cut $75-90 million in costs through worker layoffs and operational cost savings.
Boyle said the layoffs should be completed by the end of March. He said the layoffs will be done with "respect and thoughtfulness consistent with our core values."
In December, Nike also announced a $2 billion cost-cutting and restructuring strategy that included a workforce reduction at its corporate headquarters in Beaverton.
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