Harley-Davidson cuts jobs to stay afloat

CHICAGO: Harley-Davidson in the US has announced that it has no choice but to cut 140 jobs.

The decision follows the American motorcycle maker's decision to adjust production volumes.

The job cut will involve 90 production workers at the company's Pennsylvania and Wisconsin production facility.

Over the last five years, the number of units sold within the US (its largest market) has done nothing but decline and the current coronavirus (Covid-19) pandemic has added to that effect.

Production has since resumed last month and is trying to fight back from experiencing a 16% drop in sales during the first quarter against the same period last year.

Although restrictions have eased, the company has, however, estimated that sales could be down by as much as 40% in the current quarter following a dealer survey.

That said, the company's response to maintain liquidity was a cut in capital spending, freeze in hiring, salary cuts and slashed merit increases for employees.