Hertz Cuts 480 Jobs

June 11, 2007 • Park Ridge, N.J.-based Hertz Global Holdings, Inc. recently announced a restructuring initiative to further improve its operational efficiency. The initiative, which is being implemented during the second quarter of 2007, affects approximately 480 positions in the company's U.S. car and equipment rental operations, and its Oklahoma City service center. The initiative generally excludes customer-facing positions.

 

The initiative is expected to result in approximately $24 million of annualized savings. The company anticipates incurring an $8 million to $10 million charge for one-time severance costs and ongoing restructuring activities that will be taken during the second quarter of 2007.

 

In the first quarter of 2007, Hertz announced initiatives affecting approximately 1,550 positions, primarily in the U.S., Canada, Puerto Rico, Brazil, Australia and New Zealand. These earlier initiatives are expected to result in annualized savings of approximately $140 million, and resulted in a $32.6 million restructuring charge taken during the first quarter of 2007. By the end of the fourth quarter of 2007, Hertz expects to implement cost initiatives in its European operations that are expected to result in additional annualized savings of approximately $50 million.

 

The company plans to announce, as plans are finalized, other efficiency initiatives during 2007.