Parsons Xtreme Golf (PXG), a brand that made a name in the industry ten years ago, released high-end woods and irons. They boldly advertised them, claiming that “Nobody makes golf balls the way we do.” PXG’s first golf ball line was released last month, and an apparel line followed.
However, Monday saw the brand inform its employees that approximately 125, would be laid off in a restructuring effort.
Mygolfspy.com first reported the story.
According to PXG retail stores will close seven days a semaine and become open five days per week. This would mean that approximately 65 employees would lose their jobs.
Other areas of Scottsdale-based PXG are home to the 60 remaining people being laid off. A spokesperson for the brand said that the company is “rightsizing itself” as the market for golf equipment contracts and the pandemic-sparked boom in sales of golf equipment slows.
PXG employs approximately 10% of the total number of people being laid off.
According to the National Golf Foundation, on-course participation increased in 2022 with a net increase to 25.6 million golfers. Golf Datatech, which tracks the sales of golf equipment, reports that equipment sales fell by more than 12 percent in January 2023. This is a continuation of a downward trend.
John Krzynowek co-founder of Golf Datatech said that January 2023 was similar to the fourth quarter 2022. He noted that inflation, asset values declines and the threat from a recession affecting woods, irons and shoes sales, as well as inflation, were significant headwinds. Ball and gloves, which correlate better with play levels and are less expensive, were kept at the same level.
This would indicate that golfers are still playing, but those who purchased equipment during the COVID-19 boom may not be interested in buying new gear. PXG could have laid off employees as a sign that the golf equipment market, like other sectors of the economy, is contracting in the coming months.
