Harley-Davidson slashes 1,000 jobs as profits skid

[OhioChick]

Source: Economic Times India

16 Jul 2009, 2046 hrs IST, AGENCIES


WASHINGTON: US motorcycle maker Harley-Davidson said Thursday it would cut 1,000 more jobs this year after a devastating second quarter as the global recession slashed sales.

The Milwaukee, Wisconsin-based company announced the new job cuts along with a 91 percent plunge in second quarter net profit from a year earlier.

Earlier this year the company had said it planned between 1,400 and 1,500 job cuts over the next two years and would close two factories to realign production with softer demand.

"While the underlying fundamentals of the Harley-Davidson brand remain strong and our dealers' retail motorcycle sales declined less than our competitors, it is obviously a very tough environment for us right now, given the continued weak consumer spending in the overall economy for discretionary purchases," said Harley-Davidson president and chief executive Keith Wandell.

Harley-Davidson reported net profit fell to 19.8 million dollars in the second quarter. Worldwide retail sales of its iconic motorcycles plummeted 30.1 percent from a year ago.


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