According to foreign media reports, this week, Columbia laid off 80 more employees, accounting for 2% of its global workforce, in an effort to align 2012 costs with lower growth expectations.
Currently, a Columbia official spokesperson has confirmed the layoffs, stating that this round of job cuts will be focused on the company’s US headquarters in Portland, Oregon, or its European headquarters.
Earlier this month, Columbia President Tim Boyle told investors that the company would take cost-cutting measures to reduce 2012 sales, general, and administrative expenses in line with the projected sales growth for 2012. The unusually warm winter weather this year led to weaker-than-expected sales of Columbia’s winter apparel, which may also result in fewer orders for the 2012–2013 winter season.
Columbia’s portfolio includes brands such as Sorel, Mountain Hardwear, and Montrail. As of the end of 2011, the company had a total of 4,100 employees globally.
In 2011, Columbia Sportswear Company achieved total annual revenue of $1.694 billion, an increase of $210.5 million. Net income was $103.5 million, up 34% year-on-year. Among them, the Columbia brand generated total revenue of $1.392 billion, up $129.1 million year-on-year. Sorel brought in $150.3 million, a year-on-year increase of $60.6 million. Mountain Hardwear earned $142.3 million, up $20.4 million year-on-year.