Hertz to cut over 4,000 jobs
Hertz is to cut more than 4,000 jobs in a worldwide restructuring as it makes further cost savings amid slackening demand.
The car rental giant has already cut its workforce by 22% in the last two years. The new losses takes the figure to 32% since August 2006.The firm, which has about 29,350 workers in 144 countries, said the cuts would occur across all regions.
The car rental industry has come under increasing pressure as both businesses and consumers have cut back on travel.
Hertz said it could not predict when its markets would improve. The global downturn has put pressure on the volume of rentals, the pricing on rentals and the residual values of vehicles in its fleets during the fourth quarter.
Hertz said it expected to make annual savings of up to £115m in 2009 from the job cuts.
Chairman Mark Frissora said Hertz was still committed to its car rental and equipment rental businesses, and would add the “necessary resources” when conditions improved.
In November Hertz said it no longer expected to meet its annual earnings targets, which had been set in August.