Hertz Announces Workforce Reduction
Global workforce to be reduced by more than 4,000 employees.
Hertz Global Holdings Inc., the operator of the world's largest general use car rental brand, and one of the largest equipment rental businesses in North America, announced Jan.16, that as part of a comprehensive plan to further decrease costs, the company, during the fourth quarter 2008 and through the first quarter 2009, is reducing its global workforce by more than 4,000 employees.
The cost reductions are attributable to reduced rental demand and Hertz continues to reengineer work processes using Lean Sigma techniques to drive efficiencies. There will be job reductions in the car and equipment rental businesses, corporate and support areas, and in all geographies, with an emphasis on eliminating non-customer facing jobs.
The workforce reduction is expected to generate annualized costs savings in the range of $150 million to $170 million in 2009, and the company expects to take a charge in the fourth quarter 2008, related to these job reductions, in the range of $20 million to $25 million. The company previously announced, on Nov. 6, 2008, that it had reduced its workforce by 22 percent since August 2006 and, with these latest reductions, the workforce will be 32 percent lower than in August 2006.
Mark P. Frissora, Hertz chairman and chief executive officer, said, "Volume, pricing and residual values continued to decline during the most recently completed quarter, and we cannot predict when our markets will improve. As a result, we continue to take aggressive action to align our costs, including wage and benefit expenses, with business conditions. We will continue to utilize Lean Sigma techniques to reengineer important business processes to drive further efficiency. We are committed to our global airport and off-airport car rental and equipment rental businesses, and we are prepared to add necessary resources when the operating environment improves. Our actions will help ensure the company remains financially strong; I'm especially pleased to report that our liquidity was approximately $4.9 billion as of Dec. 31, 2008, and we expect to generate total net cash flow of approximately $1.75 billion for the fourth quarter of 2008," he added.
The company said that fourth quarter 2008 total net cash flow improved year-over-year and liquidity improved sequentially from the third to the fourth quarter of last year by approximately $300 million in an especially difficult fourth quarter 2008 operating environment.
More Rental Operations
Is It Time to Rethink Rental Categories?
As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.
Read More →
Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental
Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)
Read More →
U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%
Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.
Read More →
Sixt Revenue Tops $2.4 Billion in First Half of 2026
Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.
Read More →
In Memoriam: Bobby Klyce, Avis Licensee Legend
The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.
Read More →How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]
A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.
Read More →
Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027
Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.
Read More →
Avis Cuts Fleet as Summer Demand Trails Expectations
Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.
Read More →
Why Bookings Are Only the Start of the Rental Day
A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.
Read More →
This Is the Oldest Car Rental Advertisement You’ll Ever See
This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.
Read More →
