Callaway Golf to cut workforce by 12 percent
(Reuters) - Callaway Golf Co (ELY.N), grappling with weak demand for golf equipment, plans to cut 12 percent of its workforce to reduce costs.
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. (Reporting by Juhi Arora in Bangalore; Editing by Viraj Nair)
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