Harley-Davidson Cuts 500 Jobs in Latest Phase of ‘Rewire’ Strategy
Harley’s goal of becoming a leaner and more focused operation means cutting loose hundreds of employees.
Yesterday, we brought you word that while many in the markets are betting against a comeback for Harley-Davidson, Citigroup analyst Shawn Collins has pegged the company’s stock as a buy.
But today brings darker news about America’s most iconic motorcycle manufacturer. As part of the company’s Rewire strategy, the company will eliminate 700 positions and 500 jobs by the end of the year. Here’s some of the relevant bits from the update released this morning:
Changes to the company’s operating model under The Rewire include all areas of the business globally, from commercial operations to corporate functions. Changes have also occurred in the company’s leadership, among them, Chief Financial Officer John Olin has left his role, with current VP Treasurer, Darrell Thomas assuming duties as interim CFO until a successor is appointed. “Significant changes are necessary, and we must move in new directions. I thank John for his commitment during his 17 years with the company and for his leadership during this critical phase of The Rewire,” Zeitz said.
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.
The full statement is available here, and while the one-page document is thin on details, it says we can expect a more robust overview of how effective the latest recovery tactics have been in the Q2 statements. Those will be released toward the end of the month.
Given the strong headwinds the MoCo company was facing before the COVID-19 virus took a wrecking ball to the global economy, as unfortunate as it is, this news shouldn’t come as a surprise. For that reason, it’s also unlikely to impact the buy rating the Citigroup analyst gave the company. Of course, while we obviously want Harley to be in a strong financial position, we’re more concerned about how this impacts the product roadmap.
Along with the less-expensive electric bikes which will slide in under the range-topping LiveWire, there’s also Harley’s first entry into the red-hot adventure bike segment to look forward to, along with the new Flat Tracker and Cafe Racer models. Since everything from how we work to how we order a cup of coffee has been turned completely upside down as of late, none of those feel like sure things right now. Especially given the company’s much-stated goal of focusing on its most profitable markets, and most cash-generating members of the stable, like the traditional Softail and Touring bikes.
That said, we really want to extend our condolences to anyone who is going to lose their job during the Rewire. That’s a terrible thing to happen even in the best of economic times, and nobody who works for the MoCo is just there for a paycheck. Here’s hoping that everything that CEO Jochen Zeitz and his team are doing to right Harley’s ship works, and the company will eventually be able to bring back anyone they’re now letting go. We’ll keep updating the site with more news on Harley’s financial progress as we have it, so stay tuned.
Photos: Harley-Davidson
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