Harley-Davidson to Cut 13% of Global Workforce
July 09 2020 - 1:56PM
Dow Jones News
By Austen Hufford
Harley-Davidson Inc. said it would cut about 700 jobs as part of
a global overhaul, the latest company to reduce its workforce as
the coronavirus pandemic continues to depress economic
activity.
The Milwaukee-based motorcycle maker said Thursday that the
restructuring plan, including the job cuts that amount to about 13%
of its global workforce, would result in costs of about $42 million
in the second quarter. Other companies have also said recently they
would shed workers, including Walgreens Boots Alliance Inc., United
Airlines Holdings Inc. and Levi Strauss & Co. Cuts at those and
other companies come as coronavirus cases continue to climb across
the U.S., prompting people to pull back on activity outside their
homes just as some businesses were getting back to work.
Harley-Davidson's sales in its core U.S. market have been
falling for years, and the company replaced CEO Matt Levatich
earlier this year with Jochen Zeitz, a board member who formerly
ran German athletic-apparel maker Puma SE.
Mr. Zeitz has slowed the introduction of some new motorcycles
that Harley-Davidson has designed to appeal to younger riders. The
company reopened its factories after closures related to the
pandemic some weeks ago at lower production levels, reflecting
pressures including lower demand for motorcycles.
Harley-Davidson said that its move to a leaner organization
requires about 700 fewer jobs across its global operations and that
it expects roughly 500 employees to leave the company through
layoffs or other means by the end of the year. The company employs
about 5,600 workers globally.
Harley-Davidson said Chief Financial Officer John Olin, a
company veteran who held that role since 2009, has departed the
company as part of the changes. The company said Vice President and
Treasurer Darrell Thomas would serve as interim CFO until a
successor is named.
Harley-Davidson said it would discuss its plans to overhaul the
company in detail when it reports earnings later this month. The
company's shares fell 0.3% to $25.51.
(END) Dow Jones Newswires
July 09, 2020 13:41 ET (17:41 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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