Rental car company Hertz to eliminate 4,000 jobs

17 January 2009

Rental car company Hertz Global Holdings Inc. said Friday it will slash its work force by an additional 4,000 jobs worldwide as it further cuts costs to contend with deteriorating demand and vehicle values.

The company expects to save $150 million to $170 million this year and take a related fourth-quarter charge of $20 million to $25 million.

This is only the latest round of job cuts for the rental car company, which eliminated 1,400 employees this autumn.

The new reductions will bring staffing to 32 per cent below its levels in August 2006, Hertz said. As per latest figures, the company currently has about 29,350 workers in total, who operate about 8,100 locations in 144 countries.

The cuts are in the car and equipment rental businesses as well as in corporate and support areas in all regions focused on positions that do not have direct contact with customers, Hertz said in a statement.

"Volume, pricing and residual values continued to decline during the most recently completed quarter, and we cannot predict when our markets will improve," said chairman and CEO Mark P Frissora in a statement. He said Hertz is still committed to its global airport and off-airport car rental and equipment rental businesses and will add the "necessary resources" when operating conditions get better.