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New Jersey-based Hertz Global Holdings, Inc., the operator of the world’s largest general use car rental brand, has announced 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, bringing job search woes to more than 4000 employees.

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.

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 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 December 31, 2008, and we expect to generate total net cash flow of approximately $1.75 billion* for the fourth quarter of 2008,” he added.

Hertz is the number one airport car rental brand in the U.S. and at 69 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand.

This entry was posted on Tuesday, January 20th, 2009 at 12:48 pm and is filed under Job Search. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.