Reply #15: Hertz Will Eliminate a Further 1,350 Jobs

[UpInArms]

http://www.nytimes.com/2007/03/01/business/01hertz.html...

PARK RIDGE, N.J., Feb. 28 (AP) — Hertz said Wednesday that it would cut 1,350 more jobs “to eliminate unnecessary layers of management.” The announcement came almost two months after the parent company, Hertz Global Holdings, said it would eliminate 200 jobs to increase competitiveness.

The new reductions will be primarily in car rental operations in the United States, with much smaller cuts in equipment rental operations, in jobs at corporate headquarters here and at the Oklahoma City service center, as well as in Canada, Puerto Rico, Brazil, Australia and New Zealand.

The company’s chairman, Mark P. Frissora, said “further efficiency-focused changes” would be put into effect this year in the United States, Europe and elsewhere abroad.

Messages to a Hertz spokesman were not immediately returned.

The latest job cuts should bring annual savings of about $125 million in wages and related costs, the company said. It said it expected to take a charge of $9 million to $11 million for severance and related costs this quarter. The previous cuts, which mostly affected employees at headquarters and at Oklahoma City, are projected to save up to $15.8 million a year, and cause a charge of $3.3 million to $3.5 million.

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