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Thursday, Mar 28, 2024
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Callaway to Cut Jobs

Callaway Golf, the Carlsbad maker of clubs and balls that’s been the subject of several buyout bids in recent months, announced a restructuring plan that includes cutting about 500 jobs, including 200 at its headquarters site, over the next five months.

The restructuring moves would save about $70 million over two years.

The company reported that for the third quarter that ends Sept. 30, it would sustain a net loss of 6 to 12 cents per share on sales of $215 million. That compares to a net loss of 53 cents per share on sales of $129 million for the same period last year.

Analysts had expected an adjusted net profit of 2 cents per share for the quarter.

Traded on the New York Exchange under ELY, shares closed at $14.53 on Sept. 29, up 7 cents from the previous day’s close. Its 52-week price range was $9.28 to $15.95.

Callaway said the restructuring will cost about $12 million, half of which it would record in the third quarter.

Callaway has about 3,200 employees, including some 2,000 working in Carlsbad.

Mike Allen

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