Callaway Golf to cut staff numbers
Callaway Golf Company has announced cost-reduction
initiatives that are expected to generate approximately $52 million in
gross annualised savings. The action, which includes a 12% reduction in
workforce, supports the company's plans to streamline operations and sharpen
the focus placed on core products in the Callaway and Odyssey brands.
Estimated costs associated with these actions over the
next 12 months are $40 million.
Chip Brewer, president and chief executive
officer of Callaway, said: "As I mentioned last quarter, the company's business has
not recovered at a satisfactory pace and we are taking actions to accelerate
the recovery.
"The cost reduction initiatives we announced today
are part of those actions and are consistent with the significant changes we
are making in streamlining and simplifying our organisation and in how we
approach and operate our business.
These changes, however, will have a greater impact on our
financial results in 2013 and 2014 than on 2012.
"As a result, and given the slower than anticipated pace
of recovery, we no longer expect that 2012 full year financial results will be
significantly better than last year."
The company estimates net sales of $280 million for
the second quarter ended June 30, a 3% increase compared with the second
quarter of 2011. First half net sales are estimated at $565 million, up
1% increase.
"I am pleased with the progress on the changes we
are making to our business," added Mr Brewer.
"In the last few months, we have sold the Top-Flite
and Ben Hogan brands, licensed our North American apparel business,
licensed our footwear business to our current footwear partner, and
have made significant changes in senior management, including new hires to
oversee our global marketing and global operations organisations."
