Harley-Davidson Inc., the largest motorcycle manufacturer in the United States, announced plans to cut about 700 jobs worldwide as part of a global reorganization of the business in light of the economic crisis caused by the pandemic coronavirus.
According to a press release from the company, the restructuring plan, which involves reducing its global workforce by approximately 13%, will entail costs of approximately $42 million in the second quarter.
Harley-Davidson a few weeks ago has resumed operation of the plant in terms of reduced output, the company has restricted the range of motorcycles shipped to dealers. Plants and most Harley dealerships have closed in March, as part of restrictions aimed at curbing the spread of coronavirus. The company notes that the cuts are part of a broader strategic plan and not associated with the impact of the pandemic on the economy.
The transition to a more rational organization would require to reduce the number of employees worldwide by about 700 people, the report said, about 500 employees, is expected to leave the company before the end of this year. Global state Harley-Davidson has about 5,600 employees.
In addition, it is reported that the chief financial officer of Harley-Davidson John Olin left the company in the framework of the announced changes. He held this post since 2009. Vice President and financial Manager of Harley-Davidson Darrell Thomas will be acting CFO until, until it finds a successor.