Harley-Davidson To Cut 13% Of Employees Worldwide
Harley-Davidson Inc., the largest motorcycle manufacturer in the United States, has announced plans to cut about 700 jobs worldwide as part of a global business reorganization amid the economic crisis caused by the coronavirus pandemic.
According to the company's press release, the restructuring plan, which involves reducing its global staff by about 13%, will entail expenses of about $42 million in the second quarter.
Initial Rewire actions are expected to result in restructuring costs of approximately $42 million in Q2 2020. The company plans to share a summary of The Rewire, including additional costs and expected savings, when it releases its Q2 results.
Overall, the streamlined structure requires approximately 700 fewer positions across the company's global operations with approximately 500 employees expected to exit the organization through 2020.
Harley-Davidson resumed factory operations a few weeks ago in the face of reduced production, while the company limited the range of motorcycles supplied to dealers. Factories and most Harley dealerships closed in March as part of restrictions aimed at curbing the rate of spread of the coronavirus. The company notes that the cuts are part of a broader strategic plan and are not related to the impact of the pandemic on the economy.
The transition to a more rational organization will require reducing the number of employees around the world by about 700 people, the report says, about 500 employees are expected to leave the company by the end of this year. Harley-Davidson has a global staff of approximately 5,600 employees.
Also, it is reported that the chief financial officer of Harley-Davidson, John Olin, left the company as part of the announced changes. He has held this post since 2009. Harley-Davidson Vice President and financial Manager Darrell Thomas will serve as interim CFO until a successor is found.
The company promises to give more details about its restructuring plan later this month when its quarterly report is published.