Callaway Golf's CEO Resigns Amid $55M Expected Loss

announced Wednesday it is undergoing a reorganization to cut costs, amid an expected second quarter net loss of $55 million and a leadership change.

The Carlsbad-based company's president and chief executive officer George Fellows has resigned and been replaced by Anthony "Tony'" Thornley on an interim basis, according to a company statement.

Fellows, 68, held the position since August 2005 and helped the company expand internationally and cut costs. He cited the demands of a cross-country commute and family life in stepping down.

Thornley, 65, is a former president and chief operating officer of Qualcomm, and has been a board member for the golf equipment manufacturer since 2004. According to the company, he's considered the board's financial expert and is a former university champion golfer in England. He believes the company needs to take immediate and aggressive actions to become profitable again.

"While it is clear that it was the global economic recession that derailed our record sales and earnings pace, it is also clear that our business is not keeping pace with the industry recovery," Thornley said.

He also said Callaway had to strengthen its brand image to ward off increased competition.

Callaway's anticipate net loss of $55 million for the second quarter includes a $48 million non-cash charge for deferred tax assets. The charge became necessary when its U.S. business failed to recover from the recent economic slump, according to the company. Complete second quarter results will be announced July 26.

CNS contributed to this report