“Harley Davidson’s products are for the refined taste.” The following statement can be perceived through the declining rate of sales in the United States. The economic pain that the pandemic has unleashed further strains the bike maker to take the dreaded steps that many automobile makers are being forced to make.Harley-DavidsonInc on Thursday made a press release that they shall be laying off 500 employees this year which will mark the first move from the new Chief Executive Jochen Zeitz’s.
As part of a powerful overhaul, Chief Financial Officer John Olin will leave the firm with immediate effort. Darrell Thomas, the current treasurer will assume the role of the interim chief financial officer for the moment. In response to the weak sales, the Milwaukee-based automobile maker has shut off production, that has led to furloughing 140 job cuts last month as their factories were forced to closed off in Pennsylvania and Wisconsin.
The latest cuts will be incurred in addition to the proposed layoff, a company spokesperson has officially curated.Zeitz who took over in February of this year was hailed for saving Puma’s near bankruptcy crashing business venture. His restricting strategy poised at Puma qualified him to the top of Harley-Davidson’s leadership. Zeitz seeks to reset production lines, focus on the company’s core strengths and prioritize profitable market.
“Significant changes are necessary, and we must move in new directions,” Zeitz said.
Harley quoted that the current layoffs are plan of a 5 year revival strategic plan which the company hopes to reveal during the fourth quarter as will be indicated by the sales. Overall, the current restructuring will eliminate 700 positions globally which will result in a $50 million restructuring charge in 2020 that includes the $42 million charge occurred during the second quarter.
As Harley-Davidson announced the restructuring changes, they further quote that they will likely be additional restructuring charges in the next fiscal year.