* Says to cut jobs across all regions and levels
* To take a charge of $40 mln related to job cuts
* Sees FY loss of $0.55-$0.75 on a pro forma basis
July 11 Callaway Golf Co, 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
The company has 2,100 employees, according to Thomson
"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
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.