Because of reduced rental demand, Hertz said it is reducing its global workforce by more than 4,000 employees. The move is part of a comprehensive plan to cut costs.
The reductions began during the fourth quarter of 2008 and will continue through the first quarter 2009.
The job cuts will occur in the car and equipment rental businesses and in corporate and support areas. Hertz said an emphasis has been placed on eliminating non-customer-facing jobs.
The workforce reduction is expected to generate a cost savings in the range of $150 million to $170 million in 2009, Hertz said.
The company previously announced on Nov. 6 that it had reduced its workforce by 22% since August 2006. With these latest reductions, the company’s workforce will be 32% lower than in August 2006.
Volume and pricing continued to decline during the recently-completed fourth quarter, and Hertz cannot predict when the market will improve, said Mark Frissora, Hertz's CEO. As a result, Hertz will continue to take aggressive action to “align our costs,” he said.
Frissora also said Hertz was “prepared to add necessary resources when the operating environment improves.”