Hertz to cut 4,000 jobs citing global recession
WASHINGTON - Hertz Global Holdings Inc., the second-largest US rental-car company, will eliminate more than 4,000 jobs to reduce costs as businesses and consumers slow travel because of the global recession.
The move to cut about 12 percent of its workforce, including part-time employees, through the first quarter will save $150 million to $170 million in 2009, the Park Ridge, N.J.-based company said yesterday. Hertz will incur related 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. Including the job cuts disclosed yesterday, chief executive Mark Frissora has eliminated 32 percent of Hertz's workforce since August 2006, the company said. It had 31,900 employees as of Sept. 30, 2006.
Bloomberg News 