Parsons Xtreme Golf (PXG) made a name for itself a decade ago by releasing ultra-premium woods and irons, boldly advertising them and making the claim that, “Nobody makes golf clubs the way we do. Period.” An apparel line soon followed and last month PXG released its first line of golf balls.
Monday, however, the brand informed its employees that approximately 125 workers would be laid off as part of a restructuring operation.
The story was first reported by mygolfspy.com.
According to PXG, the company’s retail stores will be transitioning from being open seven days a week to five, and with that move, about 65 people would be laid off. PXG currently has 21 retail outlets.
The other 60 people who are being laid off work in other areas of the Scottsdale, Arizona-based PXG. According to a brand spokesperson, the company is “rightsizing” itself as the golf equipment market contracts and the pandemic-spurred boom in golf equipment sales slows.
The total number of employees being laid off represents approximately 10 percent of PXG’s workforce.
According to the National Golf Foundation (NGF), on-course participation was up in 2022, with a net increase of 500,000 golfers to 25.6 million. However, according to Golf Datatech, a service that tracks golf equipment sales and other industry information, equipment sales were down over 12 percent year-over-year in January 2023, continuing a downward trend.
“January 2023 was a continuation of what we saw in the fourth quarter of 2022, with significant headwinds such as inflation, asset value declines, and the threat of an impending recession impacting woods, irons, putters, bag and shoe sales,” said John Krzynowek, the co-founder of Golf Datatech. “At the same time, ball and gloves – products that correlate more closely with levels of play and are lower in cost – held close to level.”
That would imply that people who play golf are continuing to play, but golfers who bought equipment during the COVID-19 boom in the sport may not be looking to buy new gear right now. If that is the case, PXG’s layoffs could be a sign of the golf equipment industry, like other parts of the economy, contracting slight in the months ahead.