MyGolfSpy has confirmed that PXG has laid off 125 employees, slightly more than 10 percent of its workforce. Employees were notified over a Zoom call today.
Sixty of the impacted employees worked out of PXG retail locations.
According to PXG Founder and CEO Bob Parsons, most of the company’s brick-and-mortar business is by appointment. With business light on Sundays and Mondays, PXG made the decision to shift to a five-day week from seven.
Parsons previously made a similar switch in his power sports division with positive results.
The remaining 65 cuts were across all areas of the business.
Post-COVID Right-Sizing
During the COVID boom, PXG grew rapidly, hiring a significant number of new employees.
With indications that the golf business is past its peak and that sales will likely be down industry-wide in 2023, downsizing would seem inevitable.
Parsons describes the layoffs as “right-sizing” adding, “this makes us a stronger and more agile company moving forward.”
Whether this is an isolated case or simply the first notable golf brand to cut staff remains to be seen.
With layoffs on the rise across the U.S., it’s perhaps wishful thinking to believe the rest of the golf world will escape entirely unscathed.
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Gary Dulin
1 week agoMr Parsons was an accountant before he was a tech guy. I think he knows what he’s doing business wise. Some DTC brands get swallowed up by other entities & disappear. PXG makes quality stuff, not the longest on course but known for forgiveness & playability. The pricing has been all over the spectrum but a great set of irons for 1/2 the price of the big boys is a market I am all in on. I am in the camp that says PXG is around for a long time.
Tim G
2 weeks agoHe finally learned the lesson with club pricing, maybe he will do the same for his clothing line. Nice things but at $180 for a polo, I can grab 3 Footjoys and be well ahead of the game. There still has to be a value in things no matter the cost.
Michael Bodo
2 weeks agoTon PXG and their employees determient, rather than cut/eliminate player sponsorships (which they likely can’t contractually speaking) and drastically decrease advertising dollars to retain good employees they’re instead going to reduce head count to better support they’re futile marketing efforts..
Problem is, PXG’s shift from a retail only to a “direct-to-consumer” sales mdoel is backfiring, same as it did the Ben Hogan Golf Equipment Co. who did little to nothing in the way of player sponsorship and advertising compared to PXG. Problem is, with all the retail fitting centers they’ve opened there’s no turning back from this strategy. There isn’t a golf club manufacturer that I’m aware of that has shown the ability to make a DTC only strategy work and I don’t see it succeeding in PXG’s case either. Don’t be surprised if they’re gone a year or two from now., same as BHGEC. Sad thing is I really like what they’ve done from a technological standpoint even though I don’t play their clubs.
ANONYMOUS
2 weeks agoWhat is this Brand about? Didn’t know the Founders story until recently…. Internet guru who likes golf? Thought it was an Asian company for a lngtime due to the over-designed heads and very slim grips. Never knew they made/ had apparel. Nice looking logo but heard it pronounced P&G, PXG, P-n-G.. Don’t know anyone playing them either. And retail… With many brands launching D2C. Appears to be a “valuation” play all along.
Kyle
2 weeks agoI live close to Scottsdale, Az. (Goodyear, to be exact) Hard to find a foursome without at least one bag without the PXG brand in it somewhere. Great sticks, IMO..
James @ Golf Brands Inc
2 weeks agoIf any of the PXG crew see this, we’re desperately looking for people to join us. We need a club builder and customer service reps, if anyone is looking for work. We’re based in Vegas so not a million miles from Scottsdale.
We’re Golf Brands Inc, we own Zebra, MacGregor and Ram.
Kyle
2 weeks agoTake a look at what’s coming in cycling industry and wouldn’t be remotely surprised to soon hear of callaway, Titleist layoffs next
Anonymous
2 weeks agoAs someone who has worked(in the last 12 months) for the parsons recognizes this besides the parsons and apparel department. They spend millions trying to be the next Gucci or LV that they miss their whole target market. Respectfully, if and when Mr. Parsons steps away from the company, it could get very ugly there very fast.
WYBob
2 weeks agoPXG is not immune to business cycles and broader economic dynamics. Rightsizing is unfortunately a reality in today’s business environment. It’s been this way for 30+ years. As PXG expands into new channels of distribution and product categories, it’s reasonable to expect they will rightsize the company as they get a greater understanding of each market and channel. The zoom call was most likely to announce the right sizing plan and the rationale behind it, with individual managers notifying effect employees afterward. I checked with my fitter and they were unaffected. The retail side of the business has expanded very quickly in the last 12 months, so it’s not unusual for there to be some shakeout as they get a better grasp on that portion of the business. All brick-and-mortar retail has been going through a significant shakeout for at least the last 7-8 years.
Tampon Woods
2 weeks agoThe conglomerates, banks, landowners and Fund managers all know there’s a recession coming on hard this year and they need to prepare.
ANONYMOUS
2 weeks ago“Parsons describes the layoffs as “right-sizing” adding, “this makes us a stronger and more agile company moving forward.”
Hilariously ironic statement considering they laid off a dozen agile IT staff.
BP’s still got it!
Ivan
2 weeks agoPXG stands for: PING X GUYS, they look just like ping clubs….
Way too much money….
Kyle
2 weeks agoDisagree. I bought my Gen 5 driver for $250! It’s a fantastic club, I love it….
Tim
1 week agoIvan – way too much money???? – Initially yes, totally agree when they first came on to the scene but anymore – they are cheaper then majority of the larger OEM’s.
I will not get into which one is better but I will say that paying $1500 for a set of clubs is pathetic across the board.
Anonymous
2 weeks agoIt’s Nike all over again. PXG is circling the drain. Completely identity crisis.
RT
2 weeks agoWhen your Hot your Hot (start up)
when your not your not( Flash in the pan) period !!!!!
It’s tuff to fight the 3 major brands .
Jonathan
2 weeks agoGiven the current economy, it was just a matter of time before layoffs in the golf industry began. I expected Taylormade to be the company to do it first, but this definitely hurts the PXG brand. I truly empathize with those who received such a disheartening announcement. Most tech workers can rebound to another job, and these 125 people may not have to change their whole life.
Anonymous
2 weeks agoI can confirm ….
Rob W.
2 weeks agoPXG’s biggest issue is with the soft goods side of business. Their equipment & fitting experience is excellent, but their style & aesthetic is way behind trends. Soft goods apparel offer a huge margin compared to the rest of the business, and they are not even competitive.
It’s a really odd business decision from Parson’s who rarely misses opportunities like that.
Wilson Player
2 weeks agoI would agree with this statement.
They do have some great apparel, but it can seem very one sided in its style. Often only black and white, with too much logo-ing.
They did a great job in expanding the market share in clubs, now they need to do the same for soft goods.