Callaway announce austerity measures

Leading brand’s new CEO to oversee “immediate and aggressive” staff cuts

Bucket-loads of jobs to go: Callaway have announced staff cuts in light of poor financial results

One of the world’s leading golf brands, Callaway, has announced “immediate and aggressive” austerity measures that include substantial staff cuts in light of disappointing financial results.

The company is expecting a net loss of approximately $55 million for the second quarter of 2011. As such, Callaway Golf Company’s new interim president and chief executive officer, Anthony Thornley has made it a priority to oversee “organisational changes to deliver annualized pre-tax savings of approximately $50 million.”

That means job losses across all levels of the company, in order to create what Thornley calls “a leaner organization that is better able to respond to changing market conditions.” “As part of its reorganization, the company expects to reduce headcount at all levels of the organization,” said Thornley

“While it is clear that it was the global economic recession that derailed our record sales and earnings pace, it is also clear that our business is not keeping pace with the industry recovery.”

“It is therefore necessary for the company to take immediate and aggressive actions to reduce costs in order to return the company to profitability as quickly as possible. We will also focus our efforts on strengthening our brands by reinvesting a portion of the cost savings in key marketing initiatives.

“While we have the best performing products in the industry, that message has sometimes been overshadowed by the sheer volume of competitive marketing. In addition, the actions we are announcing today will also result in a leaner organization that is better able to respond to changing market conditions.

“We will provide more details about the reorganization during our earnings call in late July.”

Bryce Ritchie is the Editor of bunkered and, in addition to leading on content and strategy, oversees all aspects of the brand. The first full-time journalist employed by bunkered, he joined the company in 2001 and has been editor since 2009. A member of Balfron Golfing Society, he currently plays off nine and once got a lesson from Justin Thomas’ dad.

Editor