Callaway Golf to cut jobs, revise sales outlook - report

July 11 Wed Jul 11, 2012 1:20pm EDT

July 11 (Reuters) - Golf equipment maker Callaway Golf Co is set to reveal plans on Wednesday to cut up to 10 percent of its global workforce, Golfweek magazine reported, citing sources.

Callaway will cut 150 to 170 jobs as part of the cost-cutting plan instituted by new chief executive Chip Brewer, Golfweek said.

The company has 2,100 employees, according to Thomson Reuters data.

"Callaway is down because of the (report on) job cuts. It indicates that their turnaround efforts are not working," Diana Katz of Lazard Capital Markets told Reuters.

The majority of the layoffs will be in North America, with Joe Urzetta, senior vice president for the Americas, being the highest ranked employee to lose his job as part of the trimming, the magazine reported.

The company will also revise its outlook for its second-quarter revenue, Golfweek said.

Recovery at the company, which has been cutting costs for about a year, has not happened as fast as investors had expected, Roth Capital Partners analyst Edward Timmons said.

Company representatives told Golfweek that a statement would be made on Wednesday, but did not comment further, the magazine said.

Callaway did not immediately respond to Reuters' requests for comment.

The company's shares were down about 7 percent at $5.77 on Wednesday afternoon on the New York Stock Exchange. They have fallen 8 percent in the past year.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.