PXG laying off workers... Any credible information? (Merged)

[dxdgenert]

Just read on Johnny Wunder’s IG that another equipment site is reporting that PXG is laying off employees. Does anyone have credible information to confirm or deny? If the reporting is correct, hopefully this is just a reorganization and not a sign of worse things.

 

Regardless of how anyone feels about the company, more competition in a market segment is usually a good thing. Not to mention the human aspect of folks losing their jobs around the holidays is awful.

[QuigleyDU]

I heard through a very good and trustworthy source that pxg is laying off employees. The number I heard was about 2 dozen. Now, I do not think they are in any kind of real financial trouble or struggling and on the way to closing. I just found it interesting.

[1Mordrid1]

If it is true, I would wonder what department the layoffs are in, because in Scottsdale they just hired more club techs so that they can do their new promotion for heroes. For Heroes eligible purchases buy 7 clubs and your clubs are built and shipped in 1 day. One of the reps said this is supposed to run through the holidays.

[erock9174]

It’s Oct/Nov. Our company has job eliminations every year this time.

[QuigleyDU]

> @erock9174 said:

> It’s Oct/Nov. Our company has job eliminations every year this time.

 

That’s too bad.

[TheMoneyShot]

> @QuigleyDU said:

> I heard through a very good and trustworthy source that pxg is laying off employees. The number I heard was about 2 dozen. Now, I do not think they are in any kind of real financial trouble or struggling and on the way to closing. I just found it interesting.

 

Getting them off the books in Q4...

[ignitewvu]

You can't compete in a crowded industry when your equipment is 2-3x's the cost and doesn't perform any better.

[herbert7890]

> @ignitewvu said:

> You can't compete in a crowded industry when your equipment is 2-3x's the cost and doesn't perform any better.

 

totally agree and it doesnt help them when they dont carry in the big golf store where most people make their club purchases (edwin watts, Dicks Sporting goods, golf galaxy, PGA superstore, etc).

[GDTBATH]

> @ignitewvu said:

> You can't compete in a crowded industry when your equipment is 2-3x's the cost and doesn't perform any better.

 

Agree with this. I’m not a PXG hater in the least, in fact I’m sure their stuff is excellent, but it’s a tough ask to get people to pay thousands of dollars more for a similar product they could get from Mizuno, TM, Ping, etc. For the price differential, I’d expect to see a noticeable increase in performance.

[RodrigoNicely]

I’m along the same. By no means a PXG hater I tried their irons and found them to be not better than most offerings from other OEM’s. They are a great product, but when you charge that much in my mind your product needs to be substantially better

[Zen_Golfer]

Thats sad for the people that got let go and I hope that they find work soon, especially with the holidays coming up. Who knows if PXG is struggling or if they are just trimming the fat a bit to make their books look better for the end of the year.

It wouldnt surprise me if PXG were struggling though. Their business model isnt really all that sustainable because most people could never afford their clubs and theres only so many ultra-rich people that you can sell clubs to before you start to run out of customers.

[QuigleyDU]

> @TheMoneyShot said:

> > @QuigleyDU said:

> > I heard through a very good and trustworthy source that pxg is laying off employees. The number I heard was about 2 dozen. Now, I do not think they are in any kind of real financial trouble or struggling and on the way to closing. I just found it interesting.

>

> Getting them off the books in Q4...

 

That’s probably it. That why I tried to say I didn’t think they were close to closing up shop.

 

Johnny is in pretty good with them maybe he knows. Maybe this is the big announcement he has teased on his pod cast.

[capking]

Random PXG thought but I thought it was strange seeing some NCAA players with them during the East Lake Cup.

[GDTBATH]

> @Zengolfer36 said:

> Thats sad for the people that got let go and I hope that they find work soon, especially with the holidays coming up. Who knows if PXG is struggling or if they are just trimming the fat a bit to make their books look better for the end of the year.

> It wouldnt surprise me if PXG were struggling though. Their business model isnt really all that sustainable because most people could never afford their clubs and theres only so many ultra-rich people that you can sell clubs to before you start to run out of customers.

 

Very sad. Always hate to see hard-working folks lose their jobs. That’s tough.

[RogerinNewZealand]

When they started my idea of a Premium Club was a full set of Pings custom fit at local Ping Agent. Thats how i started in mid 1990s in golf! But since PGX has raised the bar,with pricing , a bit like Mercedes with their sports coupes,i mention Mercedes as i see some amazing stuff!! This has lead to Callaway and Titleist going after those $2000+ golf iron folk.

Them Premium or Luxury client.Not so much the XXIO or JDM discerning client.

And its likely those who went PGX in 2017 have now come back to a Callaway Ping Titleist Honma 2019 offering because there is so much amazing stuff available!

[MtlJeff]

Not to sound insensitive here but if indeed there were layoffs and if indeed it was ~ 24 people that's not really a surefire sign of anything. Could just be a couple of groups there getting "right" sized as they call it now. Most companies go through this every couple of years

[QuigleyDU]

> @MtlJeff said:

> Not to sound insensitive here but if indeed there were layoffs and if indeed it was ~ 24 people that's not really a surefire sign of anything. Could just be a couple of groups there getting "right" sized as they call it now. Most companies go through this every couple of years

 

I agree. No major company alarms going off. I just thought it was an interesting topic to discuss. Probably means nothing over all but you never know.

[GoGoErky]

> @capking said:

> Random PXG thought but I thought it was strange seeing some NCAA players with them during the East Lake Cup.

 

They announced last year or early this year they we getting into the college arena. They are filing void where Nike schools lost the clubs after Nike closed up shop. They took it a step further on the women’s side which most brands won’t do because there’s no upside in roi.

[aenemated]

> @GoGoErky said:

> > @capking said:

> > Random PXG thought but I thought it was strange seeing some NCAA players with them during the East Lake Cup.

>

> They announced last year or early this year they we getting into the college arena. They are filing void where Nike schools lost the clubs after Nike closed up shop. They took it a step further on the women’s side which most brands won’t do because there’s no upside in roi.

 

And with the new ruling that NCAA players can sign endorsement deals; that could wind up looking like a great decision.

 

[capking]

Being a college golfer would be awesome, free golf and free clubs for 4 years!

[CAT GOLFER]

1. Always tough for the people that got laid off

2. PXG has a big bankroll behind them, they aren't struggling

3. PXG never wanted to compete with the major manufacturers, their vision has always been the 1% of golf ( I recall a podcast where parson said something to the effect of there are 10MM golfers, he wants the 100K that want and can afford his clubs)

4. Right sizing is prudent on occasion, but as stated refer to #1

[Fade]

How many employees does (did) PXG have? 2 dozen seems like a lot (for what I assumed was a small company).

[Hawkeye77]

Nobody does HR the way they do, period.

[MtlJeff]

> @GDTBATH said:

> > @ignitewvu said:

> > You can't compete in a crowded industry when your equipment is 2-3x's the cost and doesn't perform any better.

>

> Agree with this. I’m not a PXG hater in the least, in fact I’m sure their stuff is excellent, but it’s a tough ask to get people to pay thousands of dollars more for a similar product they could get from Mizuno, TM, Ping, etc. For the price differential, I’d expect to see a noticeable increase in performance.

 

I'd like to know (rhetorical question, because we'll never know) what percentage of their customers actually buy the clubs expecting better performance. I think a lot of golfers just like getting new clubs, and PXG are very unique and have a certain cache to them.

 

It's not a knock on PXG, i think a lot of people buy Titleist because they think it's a players brand. I think a lot of people buy PXG because it's a statement of sorts to people who know gear

 

I don't know anything about their financials but in a sport like golf i could see them competing for a while. Golfers have money and egos.

 

Again not knocking anyone. These are just facts about humans.

[larrybud]

> @ignitewvu said:

> You can't compete in a crowded industry when your equipment is 2-3x's the cost and doesn't perform any better.

 

That depends on the product. PXG is a niche market. A lot of products are like that which people spend multiples of what the mainstream is. Hell, people go to Starbucks and spend $5 for coffee with some milk.

 

You don't have to be the biggest, you just have to have your slice of the market which corresponds to your company size.

 

[Nessism]

I live in a middle-upper class area and the local shop sells a lot of PXG. I was surprised but that's what one of the sales guy told me. Said lots of asian guys want them and don't care if they are more money than other clubs. They just want them. Sort of like guys driving a Mercedes, BMW, Audi, Porsche, etc.

[drbonesvt]

Disposable income , whatever floats your boat

[farmer]

No idea about PXG profitability, but it's a cold decision to fire people just before the holiday season.

[drbonesvt]

I think their appeal / market segment is that C level executive, not your hardcore wrx’er , hot melting heads and hard stepping shafts

 

They are private ; no shareholder pressure, prob just a realignment. Unfortunate, there is always a human cost

[GolfChannel]

The only thing I have seen PXG at any Florida youth tournament is a hat.