Calloway Golf announces restructuring; job cuts in the wings
Callaway Golf announced plans today to restructure its operations over the next 18 months, which will result in an undisclosed number of job losses at its Carlsbad and Toronto manufacturing and distribution centers.
The Carlsbad-based company issued a statement saying the restructuring is needed to improve efficiency, better customer support and bolster profits.
“The redesign of Callaway’s global operations creates a stronger, more flexible model that better positions our business for the future,” CEO George Fellows said.
He said the decision “was based on an extensive review of our operations structure and supports the gross margin improvements necessary to secure our leadership position in a competitive market.”
As part of the restructuring, Callaway also plans to create third-party logistics sites in Dallas and Toronto and establish a new production facility in Monterrey, Mexico.
Manufacturing and distribution capabilities will remain in Carlsbad and Toronto, but Callaway officials said there will be a gradual reduction in workforce at each location. It was unclear how many employees will lose their jobs.
Callaway plans to release its second quarter financial results tomorrow.
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