Callaway Golf announces 12-percent reduction in workforce as part of cost-cutting plan

Callaway Golf announces 12-percent reduction in workforce as part of cost-cutting plan



Callaway Golf announced Wednesday a 12-percent reduction in the company's global workforce as part of a cost-cutting plan it expects to produce $52 million in annualized savings.

CEO Chip Brewer said the cuts affected all divisions and levels of the organization. Earlier reports suggested a 10-percent drop in the workforce. Approximately 250 employees were impacted worldwide.



The company anticipates a pre-tax charge of $40 million in the next 12 months associated with the cost-cutting measures.

The layoffs follow a reported loss of $171.8 million in 2011. Brewer, who took over as president and CEO on March 5, has guided a move to focus on the Callaway and Odyssey brands, selling off the Top Flite and Hogan brands, and licensing out its clothing and footwear lines. The streamlining of the company's operations made layoffs inevitable.

Despite the layoffs, Callaway anticipates a pro forma loss of $0.55-0.75 per share for 2012, in part because of the stalled global economic recovery. It had earlier forecast "significantly better" results than from 2011, when the company reported a full-year pro forma loss per share of $0.63.



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