Harley-Davidson has announced a wide range of cost-cutting measures in response to impact of Covid-19 on its business.
Explaining these moves, the company’s acting chief executive Jochen Zeitz said: “The effects of Covid-19 on economies around the world have been swift and unprecedented. It is essential for us to respond quickly, adapt and position the company to manage near-term challenges while preparing to re-energise the business for the recovery and beyond.”
Harley is taking the following actions to lower costs:
Significantly reducing all non-essential spending
Temporarily reducing salaries
CEO and board of directors will forgo salaries
30% reduction for executive leadership
10-20% reduction for most other US salaried staff
No merit increases for 2020
Implementing a hiring freeze
Outside of the US, the company says it will take similar actions as based on regulations governing each of operating location. Salary reductions will be reassessed at the end of the second quarter as business conditions are closely monitored. The majority of Harley’s global production workforce is currently laid-off temporarily but their medical benefits remain intact.
Zeitz added: “We understand that navigating this new reality has a real impact on our employees. Their dedication to Harley-Davidson is never taken for granted, and we thank them for supporting one another and rallying together as we manage the profound impact of Covid-19.”