Oregon – Columbia Sportswear CEO Tim Boyle on Thursday announced that the company plans to lay off some employees at its main office in the U.S. by the end of March. He mentioned this during a discussion with analysts about the company’s finances, noting that Columbia aims to cut its workforce costs in the U.S. by 3% to 5%, mainly affecting office jobs.
More than 3,000 employees are working in Oregon
Columbia has a total of 9,450 employees, with 3,140 working at the headquarters in Washington County, as stated in its latest yearly report. This news comes shortly after Nike, another sportswear company located in the same area, also revealed plans for layoffs. Nike anticipates up to $450 million in costs related to these changes, largely due to payments for leaving employees, during the quarter ending on February 29.
Boyle’s announcement about reducing staff was part of Columbia’s report on its financial performance, which didn’t meet the expected sales and profit numbers.
“Our overall headcount and personnel expenses have outpaced the growth of our business,” Boyle said on the call.
Tim Boyle mentioned that the job cuts at Columbia will be carried out with care and respect, in line with the company’s main principles. He aims to ensure these changes support Columbia’s return to steady growth. He expects to finish these layoffs by March’s end.
For the last quarter, Columbia’s sales were $1.06 billion, and its earnings per share were $1.55. These figures fell short of what experts had predicted, which were sales of $1.08 billion and earnings of $1.95 per share.
Boyle also shared in a statement that he thinks 2024 will be a tough year for the company.
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“Retailers are placing orders cautiously, and economic and geopolitical uncertainty remains high,” he said. “We are working diligently to maximize sales in this environment, while optimizing our product, brand marketing and marketplace strategies to accelerate growth in 2025 and beyond.”