Harley-Davidson cutting 700 positions globally

CFO John Olin is also leaving his role, effective immediately

CHICAGO (Reuters) - Harley-Davidson Inc said on Thursday its Chief Financial Officer John Olin will leave the company effective immediately as part of a restructuring strategy that will lead to 500 layoffs this year.

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The restructuring is part of new Chief Executive Jochen Zeitz's efforts to turn around the struggling motorcycle maker's fortunes.

In all, the restructuring will eliminate 700 positions globally. It will result in a $50 million restructuring charge in 2020, including $42 million in the second quarter.

TickerSecurityLastChangeChange %
HOGHARLEY DAVIDSON27.24+1.03+3.93%

Zeitz said the overhaul is aimed at eliminating complexity and getting the company on "a path to winning."

WELLS FARGO REPORTEDLY PREPARING TO CUT THOUSANDS OF JOBS

"Our new operating model is simpler, more focused and enables faster decisions across the entire company," he said in a statement.

In this Oct. 17, 2019, photo Harley Davidson motorcycles are displayed at a dealership in Ashland, Va. (AP Photo/Steve Helber) (AP Photo/Steve Helber)

Harley-Davidson's sales have been declining for the past five years in the United States, its largest market, as its baby-boomer customer base ages. The coronavirus pandemic has further dented retail demand.

Darrell Thomas, treasurer of the company, will become interim chief financial officer, Harley-Davidson said.

Harley's shares were down 0.5% at $25.45 in morning trade.

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(Reporting by Rajesh Kumar Singh; Editing by Sonya Hepinstall)