Dollar Thrifty Automotive Group, Inc. (DTG 1.53, +0.11, +7.8%) announced Oct. 30 that it had reduced its overall workforce by approximately 6 percent, or 400 employees, to adjust the company's cost structure for current economic conditions. The reduction included 30 percent of senior management, 15 percent of headquarters staff and 5 percent of the company's field staff.
Scott L. Thompson, president and chief executive officer, cited current industry conditions and the company’s goal of becoming more efficient as the reason for the reductions.
The moves announced today are expected to produce annual savings in the 2009 fiscal year of about $15 million. The company expects that the workforce reduction will also result in a charge in the fourth quarter of 2008 of approximately $4 million for estimated cash severance payments.