Golf Digest: Callaway CEO Brewer explains cuts

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EXCLUSIVE: Post cuts, Brewer sees a “more aggressive, authentic and relevant” Callaway

One of the game’s equipment giants shed itself of some size as Callaway Golf announced layoffs impacting some 250 employees worldwide (out of a total of 2,100 employees for an approximately 12-percent drop) across a wide swath of divisions. The workforce reduction was accompanied by an announcement of $52 million in cost-reduction initiatives.

In an exclusive interview with GolfDigest.com, Callaway CEO Chip Brewer said the changes were personally trying but necessary.

“If this surprised anybody, they weren’t paying attention,” Brewer said. “Before I came to Callaway, I knew, and everyone in the industry knew, that there was some level of cost-cutting to be done. It’s very unpleasant but necessary. It keeps you up at night, but you have to do it.

“I didn’t think it was going to be this extensive, to be candid. You have to assess the situation, and as you get further into it, you learn more. If you come in with those ideas predetermined, you’re doing a disservice to the organization. But I wouldn’t say we’re excessively skinny. There’s not a lack of resources here by any means.”

Brewer said the layoffs affect workers across all levels of the organization, but with greater cuts coming domestically than internationally. While corporate support positions were among the most affected areas, research and development was among the least affected.

Read the full article on GolfDigest.com – Click here

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2 Comments

1. 

   Walden

   July 14, 2012 at 8:14 pm

   Too bad, but it’s what is necessary to make the company healthy again. Seems like Tony did a great job in the search and interim position, and I suspect that getting lean (stop losing so much money) and better product will be the key.

   Unfortunately, golf is simply a very tough industry right now. Good luck to you and the team.

   Reply
2. 

   lloyd

   January 21, 2013 at 7:19 am

   callaway has been losing money for the last couple of years its a shame really as there a good company. the problem is other golf companies have big name sports brand backing the company up like cobra has puma taylormade has adidas and titleist has fila even tho titleist dont seem to have the money to keep there stars and then you have nike who will never run out of cash. the job cuts are bad news but its happening all over the world but if that wot it takes to stay in the business then fine.

   Reply