Hertz Global Holdings, which operates Hertz Car Rental as well as Hertz Equipment Rental Corp., last week announced the second in a series of job cuts. The company plans to eliminate 1,350 positions in order to “eliminate unnecessary layers of management and further streamline decision making.”
The reductions are primarily in the car rental operations, with much smaller reductions in equipment rental, Hertz officials said. The layoffs will occur primarily in the company’s Park Ridge, N.J., headquarters, the U.S. Service Center in Oklahoma City, as well as in Canada, Puerto Rico, Brazil, Australia and New Zealand.
The restructuring, intended to have minimal impact on customer-facing activities, are expected to result in about $125 million of annualized wage, wage-related and associated savings. Hertz anticipates an estimated $9 million to $11 million restructuring charge for severance and related costs that will be taken during the first quarter of 2007. On Jan. 5, Hertz announced reductions affecting about 200 employees, designed to save the company up to $15.8 million, with a $3.3 million to $3.8 million first-quarter restructuring charge.
