Callaway Golf to cut workforce by 12 percent
Photo: Callaway Golf
Callaway said the job cuts would impact all regions and levels of organization and that the cost-cutting initiative would sharpen its focus on its core brands, Callaway and Odyssey.
The company has 2,100 employees, according to Thomson Reuters data.
"The company's business has not recovered at a satisfactory pace and we are taking actions to accelerate the recovery," CEO Chip Brewer said in a statement.
Callaway expects to record a $40 million pretax charge over the next 12 months related to the layoffs.
The company has also sold its Top-Flite and Ben Hogan brands, licensed its North American apparel business and made changes in its senior management.
Golfweek magazine reported earlier on Wednesday that Callaway plans to cut 150-170 jobs with a majority layoffs in North America.
Joe Urzetta, senior vice president for the Americas, would be the highest-ranked employee to lose his job, Golfweek said.
Callaway expects net sales of $280 million and pro forma earnings of 5 cents per share for the second quarter.
The company forecast a pro forma loss of 55 cents to 75 cents per share for the year.
The Carlsbad, California-based company's shares were down 5 percent in after-market trading. They closed at $5.66 on Wednesday on the New York Stock Exchange.
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