Under Armour is to cut 3% of its global workforce as part of the US sportswear brand’s 2018 restructuring plan in a move it says could push related expenses up to US$220m.

In a statement, the company said it has updated its 2018 restructuring plan based on an “organisational and process redesign intended to optimise the company’s strategic growth initiatives and overall business performance”.

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Previously, Under Armour said it expected to incur total estimated pre-tax restructuring and related charges of about $190m-$210m in connection with its 2018 restructuring plan.

However, following what it called “further evaluation”, Under Armour said it has identified about $10m of cash severance charges related to a 3% reduction in its global workforce – a figure the New York Post puts at 400 jobs.

As a result, Under Armour says it now expects between $200m-$220m of pre-tax restructuring and related charges to be incurred in 2018.

The reduction in workforce is expected to be completed by 31 March 2019 and is said to represent the final component and update to the company’s 2018 restructuring plan.

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“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 Under Armour chief financial officer David Bergman. “This redesign will help simplify the organisation for smarter, faster execution, capture additional cost efficiencies, and shift resources to drive greater operating leverage as we move into 2019 and beyond.”

As a result, Under Armour has updated its fiscal 2018 outlook and now expects operating losses to be about $60m versus the previous range of $50m-$60m. Excluding the impact of the restructuring plan, adjusted operating income is now expected to be $140m-$160m versus the prior expectation of $130m-$160m.

Excluding the impact of the restructuring efforts, adjusted diluted earnings per share is now expected to be in the range of $0.16 to $0.19 versus the previously expected range of $0.14 to $0.19.