Portland's business sector has taken a hit after sportswear giant Under Armour announced it would close its massive office space and send employees back to the East Coast. 

'Under Armour is making a strategic shift to strengthen key functions in Baltimore and expand our presence in New York by relocating some roles from the West Coast,' a spokesperson for the company said in a statement. 

'This will help us move faster, collaborate more closely, and better align our teams around serving athletes and building the brand. 

'We will continue to invest in our footwear design and development operations in Portland, which remain central to our innovation pipeline and future growth.' 

Under Armour plans to open a smaller office in the future but will move the majority of its employees to Baltimore, the company's chief communications officer, Matt Dornic told the Portland Business Journal. 

The company converted a massive YMCA building into its headquarters in the liberal West Coast city nearly 10 years ago. 

The office employed 100 people but has since scaled back to 60, according to Dornic. 

Portland's location was unique because it housed a laboratory where employees created and tested the footwear. 

Dornic said those who worked on innovation and testing teams will be relocated to the new Baltimore laboratory. 

Employees on the style team will be relocated to Baltimore and New York. Some design and technology team members can remain in Portland, but a handful of roles are expected to be cut. 

Under Armour is undergoing a 'strategic reset' following a 2025 fiscal review that revealed declining revenue. 

The company reported $58 million in restructuring charges and an operating loss of $185 million. 

'One year into our strategic reset, we're laying the groundwork for a more focused Under Armour,' President and CEO Kevin Plank said in a statement at the time.  

'By elevating products and storytelling, tightening distribution, and refining our operating model, we are in the process of reigniting brand relevance and positioning the business for sustainable, profitable growth.' 

Portland has served as the capital for footwear and athletic brands. Nike, the world's most profitable sports brand, has a long history in the city, dating back to when a former University of Oregon athlete founded the company in 1962. 

Adidas, the world's second-most-profitable sports brand, also has its North American headquarters in Portland. The company even announced a $7.9 million renovation on its campus last March. 

Nike and Adidas have dominated the sportswear and footwear franchises. Nike reported $46.3 billion in revenue last year, while Adidas reported $28.59 billion. Under Armour's revenue paled in comparison, reporting only $1.2 billion.

David Swartz, senior equity analyst, told the Portland Business Journal that Under Armour has also struggled to compete with new companies like On and Hoka. 

'These new brands have seen high sales growth and are taking shelf space away from companies that have been around for a long time,' he said. 

'Under Armour was never really able to establish itself in footwear anyway, and shoes have never been huge sellers for them even before the industry became more competitive.' 

Under Armour anticipates that the Portland move will be completed this year.