Callaway Golf Company reportedly announced to its employees on August 10 that the company will reorganize its Chicopee, MA-based golf ball manufacturing and distribution facilities over the next 18 months as part of a global restructuring plan unveiled on July 27.
According to the plan, limited manufacturing and distribution operations would be maintained in Chicopee during and after the reorganization, but a majority of the operations currently conducted at the site would be moved to other locations. According to reports, layoffs will total between 200 and 250 workers in addition to the 40-50 seasonal product workers the company laid off recently.
The announcement follows the company's July 27 statement that it would reorganize its manufacturing and distribution centers located in Carlsbad, CA and Toronto, Canada, create third-party logistics sites in Dallas, TX and Toronto, Canada, and establish a new production facility in Monterrey, Mexico.
For restructuring costs, the company expects termination benefits to total between $850,000 and $2.35 million with asset write-offs expected to be about $1.6 million and transition costs to be about $2.85 million. The total cost of restructuring is expected to be between $5.3 million and $6.8 million.
Callaway said it expects its international business to represent more than half of the company's future annual revenue, and this redesign of its global operations will hopefully allow the company to better serve this “expanding International footprint.”