Optimizes Layoffs? Andrew Laid Off 400 And Made Tens Of Millions Of Dollars Severance Pay.

Before Thursday, the Baltimore based sports giant

3% of the layoffs were announced, about 400 people.

The restructuring will result in a one-time tax cost of 1.9-2.1 billion, and the severance payment of another $10 million has been confirmed.

The restructuring is based on the reorganisation of the company's organization and process to optimize the company's strategic growth plan and overall business efficiency, and all layoffs will be completed by March 31, 2019.

The group's chief financial officer, David Bergman, said in a statement that the Andrew group is committed to becoming a better company and continues to make difficult decisions to ensure that the company is in the best position to succeed.

He explained that the new restructuring plan will help simplify the organizational structure, achieve more intelligent and faster implementation efficiency, and achieve additional cost effectiveness, and concentrate resources in 2019 and beyond to promote greater operational leverage.

The market embraced the layoffs of US sports brands, and Under Armour Inc. (NYSE:UAA), A-class shares, rose sharply in the early morning after opening nearly 1%, and rose more than 7% to 20.12 U.S. dollars in midday.

Ever since the end of 2015, the Under Armour has grown bankrupt. The German brand Adidas Adidas, once frustrated by the US market, has taken the opportunity to quickly grab the US market share with the help of antique and leisure sports in the crisis of the product recall.

Damaged not only Under Armour, the world's largest sports brand Nike

Growth continued to slow down to a continuous recession.

Two US giants have released a reorganization plan in the past two years. Andrew group has taken the lead in layoffs of about 2% people in the past year, and Nike group has simplified the core market, increased the business of DTC and business, and better connected consumers.

At the end of June and the end of July, Nike group (NYSE:NKE) and Andrew group released the latest quarterly results of a three consecutive quarter of negative performance, showing a preliminary return on restructuring.

In the two quarter of 2018 fiscal year 4-6, the Andrew group earned 1 billion 174 million 900 thousand dollars, an increase of 7.7% over the same period in 2017.

During the period, North American market revenue increased by 1.6% to $843 million 400 thousand; Europe and

Benefiting from expansion, they rose by 30.8% and 34.3% respectively.

In the 3-5 quarter of 2018 fiscal year, Nike sales increased by 3.3% to 3 billion 875 million dollars, and the fixed exchange rate increased by 2.8%.

At the same time, Andemar was still in a difficult turnaround process. In the two quarter, the group's net loss was 95 million 544 thousand US dollars or earnings per share -0.21 US dollars, which was 6 times higher than that of the same period last year or 12 million 308 thousand US dollars and the US stock income -0.03 US dollars. After excluding the reorganization fee, the net loss in the two quarter was 34 million US dollars or the earnings per share were US $-0.08.

Kevin Plank Plank, chairman and chief executive of Andrew group, said in the two quarter earnings that the company has made great progress through the first half of the year and is moving towards a more efficient direction of operation. The company's organizational structure, system and market processes are constantly optimized so that the group can better serve consumers and long-term shareholders.

After the new layoff plan, Andrea also updated its annual performance expectations. It is expected that the current operating deficit will expand from $5000-6000 to $60 million in the current fiscal year. Excluding the reorganization, the adjusted operating profit is expected to increase from 1.30-1.60 billion to 1.40-1.60 billion. The Baltimore mobile giant will also raise adj EPS from 0.14-0.19 to 0.16-0.19 dollars, and the low end is expected to be even with Thomson Reuters I/B/E/S.

In addition to layoffs, streamlining costs and simplifying structure, Andrew group has also narrowed product lines, focused online businesses, and accelerated international expansion for restructuring plans, including cutting about 40% of the product line to focus on its best selling product lines, especially high performance.

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Despite the strong performance of Adidas in North America, the market's best performing brand has been re acquired by Lululemon, the leisure sports pioneer. The share price of Lulu lemon group (NASDAQ:LULU) has surged 4 times since the low recall of the product. On the contrary, the price of the group has fallen 60% from its high level, and has rebounded more than 30% so far this year.