Columbia Sportswear to cut corporate jobs ahead of ‘challenging year’
PORTLAND, Ore. (KOIN) — Another Pacific Northwest outdoor gear and apparel company will be reducing its workforce in the upcoming months.
The Portland-headquartered Columbia Sportswear plans to lay off some corporate employees ahead of what company leaders are anticipating will be a “challenging year.”
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Brand spokesperson Mary Ellen Glynn confirmed that 3% to 5% of Columbia’s corporate workforce would be slashed by the end of the first quarter. The company website shows that the current executive leadership team is made up of about 8,325 full-time and part-time employees.
The impending layoffs, along with the company’s financial results for 2023, were revealed during an earnings call with CEO and president Tim Boyle on Thursday.
According to an announcement, the company’s net sales grew by just 1% in 2023 as its overall operating income fell by 21%. Columbia leaders project that this downward trend will continue through 2024, with another potential 2% to 4% drop in net sales.
Going forward, the company will implement a “multi-year profit improvement program” that could result in up to $150 million in annual savings by 2026.
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“Looking ahead, we expect 2024 to be a challenging year,” Boyle said in a statement. “Retailers are placing orders cautiously, and economic and geopolitical uncertainty remains high. 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.”
In late January, outdoor retailer REI revealed its own plans to lay off more than 357 employees nationwide. CEO Eric Artz attributed the act to “financial necessity,” reporting that the company lost revenue throughout 2023 and is expecting 2024 to be similarly challenging.
The announcement came shortly before REI closed its only remaining Portland location due to safety concerns.
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