Hertz to Cut More Than 4,000 Jobs to Reduce Costs (Update1)

[OhioChick]

Source: Bloomberg

Jan. 16 (Bloomberg) -- Hertz Global Holdings Inc., the second-largest U.S. rental-car company, will cut more than 4,000 jobs to reduce costs as businesses and consumers slow travel because of the North American recessions.

The moves will save $150 million to $170 million in 2009, the Park Ridge, New Jersey-based company said today in a statement. Hertz will incur severance expenses of $20 million to $25 million in the fourth quarter.

The declining travel market has reduced the number of rental transactions along with prices. The value of used cars has also dropped as consumer spending slowed. Including the cuts announced today, Chief Executive Officer Mark Frissora has eliminated 32 percent of Hertz’s workforce since taking the job in August 2006, the company said.

Hertz fell 41 cents, or 7.6 percent, to $4.98 at 12:10 p.m. in New York Stock Exchange composite trading. The shares lost 68 percent last year.

Closely held Enterprise Rent-A-Car Co. is the biggest company by sales in the U.S.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aVU89_Zn2aYk&refer=home

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So much job loss as of late that I can't keep up...

[Azlady]

1. OMG - OMG - n/t