Harley-Davidson announced it will lay off 500 employees this year as part of efforts to revive the struggling U.S. motorcycle maker.
According to “The Rewire” restructuring strategy laid out by the company’s new CEO Jochen Zeitz, Chief Financial Officer John Olin will leave Harley-Davidson effective immediately. He will be replaced temporarily by treasurer Darrell Thomas.
That’s obviously just the tip of the iceberg, as the Milwaukee-based firm will let hundreds of employees go in the near future. Declining U.S. sales over the past five years caused by the fact that its baby-boomer customer base is aging have now been aggravated by the losses causedby the coronavirus pandemic.
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As a result, Harley-Davidson has cut production and 140 jobs last month at its factories in Pennsylvania and Wisconsin. According to a spokeswoman cited by Reuters, the latest cuts are in addition to those layoffs.
The aim of the overhaul plan is to make Harley-Davidson a leaner and more nimble organization. Zeitz, who took over in February after turning around the Puma brand’s near-bankrupt business, wants to reset product lines, focus on the company’s core strengths and prioritize profitable markets. The measures announced on Thursday will lay the foundation for a five-year strategic plan to revive sales which will be announced in the fourth quarter.
In total, the new plan will cut 700 positions globally, resulting in a $50 million restructuring charge in 2020, including $42 million in the second quarter. The overhaul is expected to be completed by the end of the year, but will likely cause additional restructuring charges in 2021.
Harley-Davidson Softail