PXG Layoffs

[Templet0n]

Is this confirmed? Or just he said she said stuff? Google knows nothing about it. Plus they just launched a clothing line. They have their swanky club in Scottsdale. Etc etc. I don’t think they are going anywhere. If they are laying off employees it is not because they are struggling. Bob has very very deep pockets and this is just a toy for him.

 

[zbeekner4]

You either have a sustainable business or you don't. Period!

Sounds about right.

 

[fupresti]

The idea that Bob is cutting bait on PXG bums me out. He said he didn't plan to make money on this venture, but I wonder if it's reached a point of unsustainability.

Well he took his billions and invested them in PXG, a Harley Davidson Dealership, an outdoor shopping mall and a video production company based in Phoenix.
Not exactly my idea of business booming in 2019.

 

[Templet0n]

I find it very hard to believe this is anything more than a restructure and moving pieces. Nothing to see here. Tesla has laid off thousands. Same same.

 

[NTXNoodler]

First signs of the super high end market skidding to a stop? Hmmmm

With all the big players entering the super high end market recently I doubt it.....seems to be a niche that will stay for foreseeable future.

 

[PKorf]

With all the big players entering the super high end market recently I doubt it.....seems to be a niche that will stay for foreseeable future.

Ok then possibly the opposite. Other brands taking more market share and pushing pxg out...

 

[Stemmy66]

This sucks for those employees this time of year.... funny, I keep hearing radio ads for PXG clubs to be custom fit and to see the quality difference of PXG.... OT sure if this is a Silicon Valley target audience? Have others heard this radio ad?

 

[NTXNoodler]

Ok then possibly the opposite. Other brands taking more market share and pushing pxg out...

That was my guess, more marketing power to generate more buzz? Seems like they all have a super high end version now.

 

[Templet0n]

So much bad speculation going on from complete hear say.

 

[Canadan]

Heard from multiple sources now that over the last month, two to three dozen employees have been laid off at PXG with more possibly coming in the near future.

Hate hearing about people losing their jobs but hopefully they land on their feet somewhere quicky.

Not sure what else to expect when you price yourself out of reality.

Sucks, but I wouldn't hate to see them come back with a more realistic pricing structure.

 

[Sox_Fan]

Stinks for those getting laid off along with their families. I actually saw and hit my first ever PXG club at the Gethering last weekend. Was always curious how long they could sustain their high price model in the ultra competitive golf equipment industry.

 

[JB]

Is this confirmed? Or just he said she said stuff? Google knows nothing about it.

We don’t report it if it isn’t fact. Our sources definitely aren’t Google though. I like to think my track record is solid. ?

Definitely didn’t say the company is going out of business. We reported the layoffs that took place at Taylormade the same way and know they weren’t going away.

 

[Tenputt]

Like others, I wonder where the layoffs were targeted and how many total employees the company has. It always seemed to me that the market for those willing to pay PXG prices is not large enough to make the business model sustainable. However, there is no need to jump the gun and say the company is dead. Parsons has deep pockets.

 

[Roland]

Quickest way to be a millionaire in the golf equipment industry: Start as a billionaire

 

[aljaklaw]

Nobody fires golf employees the way we do. Period

 

[OITW]

Interesting.

Curious to see what roles were being eliminated.

Hate to see it, and hope the affected people find work quickly

 

[McLovin]

Wish I saw all golf companies corporate “restructuring” reported the same way.


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the last company i can remember laying off a large staff was reported almost identically. and that company was and still is a sponsor of thp with whom events were done prior to that reporting and have been done after that reporting.

 

[tahoebum]

Since the company is private we’ll never know exactly how well they are doing unless they go out of business. I hope they survive. IMO their high prices allow products like the Epic Forged irons at $300 each to come to market and actually sell in enough numbers to keep more like them coming. A section of the golf market now thinks $300 each for irons is a bargain. I sure love my Epic Forged 4 iron!

 

[Molten]

I couldn’t find the information I wanted from D&B Hoovers but if it is a few dozen, that’sa healthy chunk of the company based on what I can see

 

[JB]

Since the company is private we’ll never know exactly how well they are doing unless they go out of business. I hope they survive. IMO their high prices allow products like the Epic Forged irons at $300 each to come to market and actually sell in enough numbers to keep more like them coming. A section of the golf market now thinks $300 each for irons is a bargain. I sure love my Epic Forged 4 iron!

Yes although we do follow Golf Datatech Market share trends with month over month and year over year reporting. It’s not perfect but can offer trends.

 

[mpeterson]

Agreed, and a little off-topic, but it's one of the reasons I question a "comeback" from a company like Lynx. I could be wrong, but I would think a company like PXG would have a much stronger foothold on the market share than Lynx (without an extremely brilliant plan) could even hope to muster over the next couple of years. The golf industry is going to be interesting to watch over the next few years, for sure (that's really nothing new, though).

I think the difference there is that Lynx is just making a re-entry into the US market. They’ve been “back” in the UK for a while so they aren’t starting from scratch. PXG had to have spent a crazy amount on R and D getting things off the ground.

 

[tahoebum]

Yes although we do follow Golf Datatech Market share trends with month over month and year over year reporting. It’s not perfect but can offer trends.

Does it estimate sales for PXG? With companies like Callaway and TM having annual sales around $1B, I’d love to know what PXG sells. $50,000,000??

 

[DG_1234]

I think PXG's business strategy does the golf industry more harm than good. Specifically , introducing clubs to the market place at about twice the price point of current industry standards provoked other brands to raise their prices.
Dramatically increasing equipment prices, during an era when golf participation is declining and courses are closing, is not good for anyone.

 

[Jman]

I think PXG's business strategy does the golf industry more harm than good. Specifically , introducing clubs to the market place at about twice the price point of current industry standards provoked other brands to raise their prices.
Dramatically increasing equipment prices, during an era when golf participation is declining and courses are closing, is not good for anyone.

They haven’t been dramatically increasing as a whole though. They’ve been introducing additional lines/options in tandem with their typical price ranges to hit both segments, not just one.

 

[JB]

the last company i can remember laying off a large staff was reported almost identically. and that company was and still is a sponsor of thp with whom events were done prior to that reporting and have been done after that reporting.

Correct. We always wonder if it’s even worth posting being dealing with peoples lives, etc. we do know THPers follow industry trends though, so when it’s verified by multiple sources, it is worth sharing.

Hate to see it from anybody but it’s part of business.