Hertz Global Holdings recently announced a restructuring initiative to further improve the company’s operational efficiencies. The initiative, being implemented during the second quarter of 2007, affects about 480 positions in the company’s United States car and equipment rental operations as well as its Oklahoma City service center.
The majority of the cuts affect car rental operations, according to sources.
The downsizing generally excludes customer-facing positions, the company said. The initiative is expected to result in annualized savings of about $24 million. Hertz expects to incur an $8 million to $10 million charge for one-time severance costs and ongoing restructuring activities taken during the second quarter.
During the first quarter of 2007, the company eliminated about 1,550 positions, primarily in the U.S., Canada, Puerto Rico, Brazil, Australia and New Zealand. The company expects these cuts to result in annualized savings of about $140 million. The cuts resulted in a $32.6 million restructuring charge in the first quarter.
By the end of the fourth quarter, Hertz expects to implement cost initiatives in its European operations resulting in annualized savings of about $50 million. The company plans to announce other efficiency initiatives during 2007 as plans are finalized.
Based in Park Ridge, N.J., Hertz Equipment Rental Corp. is No. 4 on the RER 100.