American motorcycle major Harley-Davidson Inc is planning to cut 700 jobs worldwide this year as part of its new strategic plan to revive the company which has been hit hard by coronavirus pandemic.
As part of the change, Chief Financial Officer has resigned with immediate effect and has been replaced on an interim basis by Darrell Thomas, who will continue to serve as VP treasurer. "Overall, the streamlined structure requires approximately 700 fewer positions across the company's global operations with approximately 500 employees expected to exit the organisation through 2020," Harley-Davidson, Inc. said in a press release on Thursday.
Harley-Davidson has branded its job cuts and restructuring plan as 'The Rewire'. It that will cost the company $42 million in Q2 FY20. The company plans to share a comprehensive summary of The Rewire actions and financial impacts when it releases its Q2 results later this month. The Rewire will set the foundation for a new 2021-2025 strategic plan which is expected to be shared in Q4.
These actions are part of a comprehensive Rewire playbook designed to address top priority opportunities, drive consistent execution and reset the company's operating model in order to reduce complexity, sharpen focus and increase the speed of decision making.
"The Rewire is progressing very well and substantial work is being done to eliminate complexity and get Harley-Davidson on a winning path. Our new operating model is simpler, more focused and enables faster decisions across the entire company," said , chairman, president and CEO of Harley-Davidson.
"We've taken a hard look at our entire set up, our spending, and how work is getting done, to align our operating model, structure and processes. We are building a strong foundation to drive a high-performance organisation in the future," he said.
Zeitz thanked John for his commitment during his 17 years with the company and for his leadership during this critical phase of The Rewire. He said that significant changes are necessary, and one must move in new directions.
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