As a result of the impact of the coronavirus pandemic on travel demand, Hertz Global Holdings “has taken proactive and aggressive actions to manage costs and reduce capital expenditures” the company reported in an 8-K form filed with the U.S. Securities and Exchange Commission.
On April 14, Hertz committed to North American workforce reductions across all departments affecting approximately 10,000 employees. The terminations were effective April 14, 2020 for non-union employees and will be effective April 21, 2020 for union employees.
Hertz expects to incur an aggregate of approximately $30 million in costs relating to these workforce reductions, including approximately $28 million in severance or termination payments and approximately $2 million in benefits costs primarily relating to healthcare.
These costs will be incurred over the next 12 months with a majority to be incurred over the next three months, the company reported in the filing.