During a conference call Thursday morning, Callaway interim CEO Anthony Thornley said the company, which reported a second-quarter loss of $55 million on Wednesday, has not been effective at getting its message across to consumers.
“Our competition has been investing considerable amounts of money, especially recently, in advertising and tour expenses,” Thornley said. “That has certainly had an effect on our business. We are going to look to increase our investment in that area and we are also going to look to improve the way we deliver the message.”
On Wednesday, Callaway announced the resignation of CEO George Fellows, who had been in that position since 2005, and said it would “reduce headcount at all levels of the organization.” (You can read Callaway’s press release here.)
“While it is clear that it was the global economic recession derailed our record sales and earnings pace, it is also clear that our business is not keeping pace with the industry recovery,” Thornley said in Wednesday’s news release. “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.”
Company officials said they are looking to save $50 million annually through the job cuts and streamlined operations. According to Ronald Beard, chairman of the board at Callaway, the company is not looking for a new CEO at this time.
Thornley has been a member of Callaway’s board of directors since 2004. From 2002-2005, he was the president and chief operating officer of Qualcomm.