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With sales down, Harley-Davidson to cut 250 salaried jobs

Written by Brett Sholtis/York Daily Record | Oct 20, 2015 12:55 PM
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FILE PHOTO: This Sept. 3, 2015 photo shows motorcycle lined up at the Harley-Davidson museum in Milwaukee. (AP Photo/Greg Moore)

(York) -- With lower-than-expected quarterly profits and global sales down, Harley-Davidson said it will cut about 250 salaried positions globally as part of a reorganization plan.

The company reported third-quarter 2015 earnings per share of 69 cents, the same as third quarter 2014. Third-quarter net income was $140.3 million, down from net income of $150.1 million in the year-ago period.

Motorcycle sales dropped 1.4 percent worldwide for the third quarter compared to the year-ago period. U.S. sales were down 2.5 percent, while international sales were up 0.9 percent.

The press release said Harley-Davidson expects to take on approximately $30 million to $35 million in fourth quarter 2015 expenses, mainly "for employee separation and reorganization costs related to this reallocation."

"In the short term, because the third quarter did not unfold as we expected, we are lowering full-year shipment guidance," company president Matt Levatich in the press release. "Our ongoing commitment to manage supply in line with demand and maintain the premium nature of the brand remains a top priority for Harley-Davidson."

Harley-Davidson spokesman Tony Macrito said the cuts will be among salaried employees, not hourly workers.

"An early retirement incentive program will be offered to eligible employees in advance of what we believe will be a global reduction of around 250 salaried positions across the company, largely completed by the end of the year," Macrito said by email. "Adjustments in positions and structure will be made in essentially every part of the business to achieve the right focus and support the increased demand-generating investments."

The company operates an assembly plant in Springettsbury Township, York County.

 


This article comes to us through a partnership between York Daily Record and WITF.

 

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