LIV Golf warns staff of possible layoffs as uncertainty over league's future grows

LIV Golf has warned employees that workforce reductions could be on the horizon as the breakaway circuit continues to navigate an increasingly uncertain financial landscape.

According to Golf Digest, staff were informed on Wednesday that the organisation has begun the legal process required ahead of any potential layoffs.

In the United States, LIV Golf is filing notices under the Worker Adjustment and Retraining Notification (WARN) Act. 

Filing a WARN notice does not automatically mean redundancies will take place, but it is a legal requirement for companies with more than 100 employees when large-scale layoffs are being considered. 

Similar employment notification rules also apply in the United Kingdom.

The development comes at a pivotal moment for LIV Golf, which is actively seeking new investors after Saudi Arabia's Public Investment Fund (PIF) reportedly brought an end to its direct financial backing. 

The sovereign wealth fund is believed to have invested between $5 billion and $8 billion into launching and growing the league.

LIV executives reportedly approached potential investors in an effort to raise between $250 million and $350 million in fresh capital last month. 

League officials believe the business can become profitable within the next three years, although questions remain over its long-term financial outlook and whether current funding will comfortably support future operations, including the 2026 season.

The circuit has already altered its schedule once this year after postponing an event in Louisiana, citing both the summer heat and a clash with the FIFA World Cup. 

During an appearance on CNBC in June, chief executive Scott O'Neil was asked whether he could guarantee every remaining LIV Golf event would go ahead.

Rather than offering a direct assurance, O'Neil replied: "What I can guarantee is a heck of a return if you come invest in this business."

As part of its efforts to attract outside investment, LIV Golf announced an independent board of directors in April, a move designed to strengthen its search for long-term financial partners. 

The governance changes followed Yasir Al-Rumayyan, governor of the PIF and one of the driving forces behind LIV Golf's creation, stepping down as chairman of the league's board.

Despite the latest developments, LIV Golf insists there are no immediate changes planned to its operations or staffing levels.

In a statement issued to several media outlets, a spokesperson said: "There are no changes to LIV Golf's current workforce, operations, or schedule at this time."

The statement continued: "As our process to identify strategic investors moves forward in a positive direction, and as part of responsible planning for a range of possible outcomes, we have notified employees in the United States and United Kingdom of potential future actions related to the League's corporate workforce. 

"This step is being taken in accordance with legal obligations in each jurisdiction. We deeply appreciate our employees' continued dedication as we work toward a strong and sustainable future for the league."

The financial uncertainty arrives alongside fresh legal challenges for the league. 

Earlier this week, ESPN reported that lawyers representing English companies World Golf Group and Premier Golf League are pursuing damages of between $210 million and $630 million from LIV Golf, the PIF and a number of associated individuals and organisations.

The claim alleges breach of confidence and unlawful means conspiracy. Court filings describe LIV Golf as a "bald facsimile" of the Premier Golf League concept, arguing that several features now synonymous with LIV — including shotgun starts, 54-hole tournaments, simultaneous individual and team competitions, four-player franchises led by captains and knockout stages in the team championship — were originally developed by PGL.

While LIV Golf expanded its regular events to 72 holes this season, the legal dispute adds another layer of uncertainty as the league continues its search for new investment.

LIV Golf's next tournament remains scheduled to begin on 23 July at JCB Golf and Country Club in Uttoxeter, England.