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TaylorMade cuts 15% of it's Workforce and closes Adams Golf Headquarters in Plano

post #1 of 42
Thread Starter 
About 125 people recently lost their jobs..........

The adidas Group, which is the parent company for Taylormade-adidas Golf and Adams Golf among others, is consolidating its Adams Golf Headquarters, currently operating in Plano, Texas to its global headquarters in Carlsbad, Calif.

A company official at TaylorMade-adidas Golf issued the following statement statement on Tuesday, August 12:

“We recently announced that a reorganization of our company was being planned. This restructuring includes the consolidation of our Adams Golf business currently located in Plano, TX to our global headquarters in Carlsbad, CA. We are also realigning our workforce at TaylorMade to better meet the needs of our business and ultimately, our consumers. This includes investing in new areas to strengthen our brands and strategically approach our future to reinforce our leadership in the industry.”

According to financial statements, TaylorMade-adidas Golf sales were down 18 percent currency-neutral in Q2 and 27 percent year-to-date, totaling ~$315 million (U.S.) of decline over the first half of 2014, compared to the first half of 2013.
post #2 of 42
Quote:
Originally Posted by RonTheSavage View Post

About 125 people recently lost their jobs..........

The adidas Group, which is the parent company for Taylormade-adidas Golf and Adams Golf among others, is consolidating its Adams Golf Headquarters, currently operating in Plano, Texas to its global headquarters in Carlsbad, Calif.

A company official at TaylorMade-adidas Golf issued the following statement statement on Tuesday, August 12:

“We recently announced that a reorganization of our company was being planned. This restructuring includes the consolidation of our Adams Golf business currently located in Plano, TX to our global headquarters in Carlsbad, CA. We are also realigning our workforce at TaylorMade to better meet the needs of our business and ultimately, our consumers. This includes investing in new areas to strengthen our brands and strategically approach our future to reinforce our leadership in the industry.”

According to financial statements, TaylorMade-adidas Golf sales were down 18 percent currency-neutral in Q2 and 27 percent year-to-date, totaling ~$315 million (U.S.) of decline over the first half of 2014, compared to the first half of 2013.

 

Also TaylorMade cut 15% of it's workforce globally

 

http://www.geoffshackelford.com/homepage/2014/8/12/15-taylor-made-workforce-cuts-adams-golf-plant-closes.html

Quote:
The cuts come as the company deals with “profitability challenges” according to adidas Group CEO Herbert Hainer. What a stunning turn of events for a company that was riding high just 18 months ago before deciding to release three drivers in a calendar year. Sadly, much of this news will be attributed to the unhealthy state of golf or the long winter instead of to poor business decisions and rapid-fire product cycles.
post #3 of 42

That really sucks for the workers but it doesn't affect my distaste for Taylormade and their role in attempting to bastardize the game.

post #4 of 42
I'm certainly not an industry expert by any means but I tend to agree that TM's woes are, in large part, self-inflicted. Certainly the state of the market didn't help, but they seemed to have totally misread the demand for their new products.
post #5 of 42
Meanwhile I don't like the company TM anymore. Somehow I have the feeling they think the golfers are stupid - introducing new equipment every few months that carries the ball longer, longer, even longer... All they do is cheat with lofts and extend the shaft length.
post #6 of 42

I don't buy TayorMade equipment and I agree that the onslaught of new equipment launches and advertising claims is almost insulting, but I promise you they are doing far more than playing around with lofts and shaft length. Those tricks were played out decades ago.

post #7 of 42
Quote:
Originally Posted by fore-wayleft View Post

I don't buy TayorMade equipment and I agree that the onslaught of new equipment launches and advertising claims is almost insulting, but I promise you they are doing far more than playing around with lofts and shaft length. Those tricks were played out decades ago.

Oh, you mean the revolutionary "Speed Pocket" in their Speedblade irons? From their website:
http://taylormadegolf.com/taylormade-irons-speedblade-overview/
Quote:
What’s a Speed Pocket™? A deep slot behind the clubface that allows the face to flex and rebound faster, increasing your ball speed and launch angle to boost your distance dramatically. You also get more control because your shots land on a steep angle and stop fast. Quick review: faster ball speed, higher launch angle, longer distance, quick stops. Yes, you need a Speed Pocket.

The Speed Pocket makes all other irons inferior. It’s nothing personal. It’s innovation. The Speed Pocket gives SpeedBlade irons the fastest face of any TaylorMade iron ever, creating a potent combination of ball speed, high launch, long carry and steep descent that’s never been possible before. You’ll hit shots you never thought you could -- higher, longer, closer to the hole.

Edited by Reval14 - 8/13/14 at 3:55pm
post #8 of 42
I like TM products, but it's total bullshit that all those workers had to pay the price because the marketing team was too stupid to understand market saturation.
post #9 of 42

Right now its my driver and 3 wood I'm having the most trouble with distance. I found the Taylormade tour preferred cavity back irons were really easy to hit and they dont look terrible at address. That being said I wasn't actually a fan of taylormade but after hitting a few of their clubs they won me over. When you look at any company's G.I irons they all have the lofts jacked up and the length extended. Thats not just TMAG. I am still a big Callaway fan but they are pretty much just as bad as taylormade without releasing a new product every payday (ok maybe not every 2 weeks but its a lot) That being said they are always offering players some kind of product, so if you dont like the irons they come out with, wait and see whats around the corner. If you like nike or ping and they release their irons and you dont like the look or feel you have to wait another full year, sometimes even longer. 

post #10 of 42
Thread Starter 
Quote:
Originally Posted by Reval14 View Post

Oh, you mean the revolutionary "Speed Pocket" in their Speedblade irons? From their website:
http://taylormadegolf.com/taylormade-irons-speedblade-overview/
I remember the day the original RocketBlades were released and Wilson Tweeted this in response to a Taylormade tweet, it was awesome c3_clap.gif
post #11 of 42

I think you might be misunderstanding me. I agree that most of the tech "breakthroughs" and marketing claims are BS and am not a TM fan. I just disagreed with the comment that it's all about jacked up lofts and longer shafts. It's not that simple; there's only so far to go with that and manufacturers have been at that since at least the early '90s...probably much earlier.

post #12 of 42

It seems to me that their short product cycle, which comes with an R&D and Manufacturing costs, did not translate into higher sales.

 

I did find it curious that the CEO statement was that that it was market conditions not bad business decisions.  That runs counter to my first statement.

 

I do play TM equipment but several models old.

post #13 of 42
When a company such as TM buys a company like Adams, naturally part of the objective is to have everyone under one roof and eliminate duplicate job responsibilities and in other cases empower employees to take on more responsibility. this occurs just about every day regardless of the industry. In TM's case do you really need two Rand D centers?


You want to know why Taylormade was introducing drivers, sometimes clubs every 6-9 months. It's as simple as being a very large global company, you introduce a club in the northern hemisphere in December for the folowing March the June consumer buying cycle. Well that satisfies us in America and Europe. Well what about South America, China whose markets ARE growing? Do you sell them last seasons driver? Or continue innovating and bringing new product to market? According to golf data research over 70,000 golfers buys MORE than 2 drivers in one calendar year and like it or not today's affluent consumer be it iPhones or drivers wants the latest, demands the latest and purchases at retail the latest. they don't want last years driver, nor do they want to spend less on last years hot product. Its just the way the world operates now.....NEW is better than last years

When a manufacturer brings something new to market, a real game changer product for example be it a miracle drug that will keep you erect, or the latest electronic gizmo. More often than not the Manufacters gains over 65% + of the market share in that product category! the competive knock offs, wannabees or almost like products fight out for the remainder of the <35%

Many club companies would love to have the problem to produce and innovate, but they either can't due to lack of resources, materials, engineers, marketing or costs. Will everyone have layoffs now? Probably not because some are owned by huge conglomerates, where golf products are fractions of 1% of what they do for business.
I due predict more consolidation by some companies in the near future.

TM isn't the only one that is impacted by the the downturn in golf- reportedly 400,000 walked away just last year alone. every manufacture is down. The truth of the matter golf has been flat for 20 years and the past 5 years TM has managed to capture market share, but not with growth necessarily but at other manufactures expense ( Cleveland, Callaway, cobra etc) TM is huge, their sales top over 2.1 billion in clubs, balls etc. Nike on the other hand only does about 150-175 million in clubs and balls, safe to say nike won't be having lay offs if they are down 15% but there will cost cutting measures.

Golf, the amount of new players is almost nonexistent, especially the young. the young tend to be first adopters of technology, fewer 25-45 aged men & women playing now, the few that are are playing less. the remainder are playing less, dieoff or have given up due to daily costs, healthier overall financial losses.

I work in the golf manufacturing industry and have so for over 20 years
post #14 of 42
nike
http://www.oregonlive.com/business/index.ssf/2009/05/500_oregon_jobs_among_1750_nik_1.html

callaway 2012
http://blogs.wsj.com/marketbeat/2012/07/11/callaway-to-layoff-up-to-10-of-staff-report/

titleist had some job cuts I think 07 and 09

now just add up all these lay offs up, and ask your self why golf is declining, I would say no money to play for a lot of people, or to buy products.
http://www.businessinsider.com/14-biggest-mass-layoff-announcements-2013-6?op=1

as soon as big gov stops over taxing and regulating every business big or small things will get better, until then. good luck.

there will be more,
post #15 of 42

I've just started golfing again, and having never really "followed" the brands associated with it, I wanted to do research before I bought ANYTHING.

 

First thing I noticed was that TM truly is saturated and even Callaway is (though not as bad).

 

Titleist and Ping seems aimed at people with money who want to buy nice clubs and don't [need] something new and shiny annually. If you want to buy for the long haul, get these.

 

But TM? The brand just seems priced too high for all the different stuff it offers. All of their stuff can't possibly be that great, yet it seems like every item is premium priced.

 

Personally, I have no desire to buy anything from TM, unless it's maybe golf balls or some cheapo item for practice or whatever.

post #16 of 42

Amid all the hype, the TM speed pocket in the longer irons (usually 3i to 7i) does have benefit. I have the SLDR irons, and the 4i and 5i are easier to launch well. So much so, the 4i may bump my Adams 4H out of the bag when I play certain courses. The 4i, hit from a tee, has proven to be scary straight on tight holes. In consideration, the 4H is probably more reliable on shots from fairway or rough - but not as accurate as a better 4i hit.

 

In terms of distance increase, TM longer irons are gaining yardage by - surprise - stronger lofts. SLDR 4i is 21* loft. Callaway has gone a similar route: 20.5* X2Hot and Pro 4i has 20.5* loft / Apex 4i has 21.5*. (That being said, you could probably squeeze out an iron at the long end and add an extra wedge if you wanted.)

 

As for longer TM clubs, I played the 19* Raylor for three seasons as a 5W replacement. Only problem I had was distance control. TM drivers are another story: They flew all over the place for me The TM drivers might have worked if I got a custom order with an inch-shorter shaft.

 

TM basically tried an "arms race" strategy, overwhelm the competition by pumping out new toys and claiming to be the "cool kid." TM came on as the renegade, with the RBZ hype and pushing for bigger golf holes.

 

Callaway got into the arms race - especially in the 2011-12 time frame season when they confused customers with six - or was it seven? - iron models related to the RazrX theme. Callaway was the first to retrench - a C rep told me this summer that the company was "holding the line" on introducing new club models.

 

The TM problems got magnified by being part of Adidas. Parent Adidas had a big push on World Cup futbol marketing, but had disappointing sales figures for that sport.

 

It bothers me also that Adams HQ is getting absorbed by TaylorMade - Adams was a steady counterbalance division to the flashier TM unit. Hope Adams doesn't disappear.


Edited by WUTiger - 8/14/14 at 10:01am
post #17 of 42
Surprising - that Adams facility is about 4 miles from my house. I have a friend who used to work there but no one I know currently employed.

Having worked at a large bank most of my career and been involved with 10 or so acquisitions, consolidation is inevitable and is the prudent economic move, unfortunately.

I have a bunch of TM equipment but none of it was bought new so I guess I haven't helped them much. But I agree with the majority of folks who believe TM saturated the market to their own peril. They're rethinking their approach and will come out of these problems strong and healthy.
post #18 of 42

I'm wondering  about the "final" decision ---

 

When TM strategizes and figures out whether it is less expensive to market under the more famous and magical "Taylormade" brand with a "Better Player line," and a "Average Joe Golfer" line as they had with the a Tour/Better Player Product and the Burner "Average Joe" Product; OR

 

Will they determine that the Better Player lineup will be Taylormade and the "Average Joe Golfer" line will be Adams.

 

Right now, it seems an unrefined mix ...

 

Recently, the TM Marquee Lineup and a JetSpeed Lineup was not successful, so it seems as a quick short term answer, they went to a SLDR S Lineup. Still the SLDR is not exactly "Average Joe Golfer" although they market that way.

 

IMHO, I think there either a lack of reality or truthiness as to the marketing of the SLDR. From what I've seen on the range and course, it appears to lack the "Average Joe" factor. I think the R1 also lacked "Average Joe" factor, as well as the R11 Series. I saw too many guys, even with speed, who had trouble with those lines/shafts as well as the fairways - long and crooked/short and crooked/short and squirrel hunting. Of course, the RBZ driver was more of an Average Joe and Better Player club, but I think the RBZ fairways and hybrids were more better player due to the longish shafts and deep faces. I think a lot of guys bought the RBZ and either had success with it, or hit it 50 yards into the dirt, and have just surrendered to the "I can't hit a fairway off the deck" mentality. They haven't bought since...

 

A. Two Brands? Two Choices

 

1 a. Taylormade for Better and Average Joe Players

 1. b. Adams for Beginners (so as not to dilute the TM Lineup)

 

or

 

2. a . Taylormade for Better Players

2. b.  Adams for Average Joe

 

But it does say "TaylorMade" on the Building .... 

 

B. One Brand with Two Lineups?

 

You would think that B. would be the logical choice, but who knows after the JetSpeed fiasco? Or maybe it was the marketing of that product or the longish winters.

 

TM has some thinking to do.

 

Honesty with the market

Two Brands or One?


Edited by Mr. Desmond - 8/14/14 at 10:34am
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