CARLSBAD, Calif. -- Shares of Callaway Golf Co., a major maker of golf clubs and equipment, rose more than 4 percent Friday after announcing plans to cut 500 jobs, or about 15.6 percent of its work force, in a restructuring that aims to save $70 million over two years.

The restructuring will cost about $12 million, Callaway said after the market closed Thursday. The company plans to record $6 million, or 5 cents a share, of the restructuring charges in the current quarter.

The company predicted a loss for its third quarter of 6 cents to 12 cents a share on sales of $215 million. Excluding restructuring and other charges, Callaway estimated results ranging from a loss of 5 cents to a profit of 1 cent a share.

Analysts surveyed by Thomson Financial expect, on average, adjusted profit of 2 cents per share.

Callaway plans to eliminate 500 positions worldwide over the next five months from its work force of more than 3,200, said Larry Dorman, a senior vice president.

Callaway also said it will consolidate all golf ball manufacturing at certain locations in Massachusetts and New York and combine selling operations for four of its brands: Callaway Golf, Odyssey, Top-Flite and Ben Hogan.

"In particular, we are identifying steps in our supply and assembly operations that will further improve performance and reduce costs," said President and CEO George Fellows in a statement.

Its shares rose 56 cents, or 3.8 percent, to close at $15.09 Friday on the New York Stock Exchange. Its shares have traded in a 52-week range of $9.28 to $15.95.