Harley-Davidson will be eliminating 700 positions globally by the end of the year in accordance with its new The Rewire strategy, according to a report from our news partners at The Milwaukee Business Journal.
The moves represent a dramatic streamlining that will affect more than 500 hundred current employees, the Journal says. This comes after Harley-Davidson previously announced more than 100 positions cut at its York, Pennsylvania, and Tomahawk locations.
“The Rewire is progressing very well and substantial work is being done to eliminate complexity and get Harley-Davidson on a path to winning,” Harley-Davidson president and CEO Jochen Zeitz said in a release. “Our new operating model is simpler, more focused, and enables faster decisions across the entire company. We’ve taken a hard look at our entire set up, our spending, and how work is getting done, to align our operating model, structure, and processes. We are building a strong foundation to drive a high-performance organization in the future.”
Harley-Davidson also said chief financial officer John Olin will be leaving the company immediately, after 17 years with the company. Vice president treasurer Darrell Thomas will take over as interim CFO until a successor is appointed Thomas has held his current position since 2010.
Zeitz said he plans to make the management team less isolated and more nimble in addressing challenges. In The Rewire, the company also plans to prioritize markets that matter, enhance the core strengths of the company while balancing expansion into new spaces.
Harley-Davidson (NYSE: HOG) is expecting restructuring costs of $42 million the second quarter of 2020. The company plans to share additional costs and savings in The Rewire plan when it releases second-quarter earnings later in July.