Workforce reduction to cost H-D millions
April 25, 2008
Filed under Features
The layoffs that Harley-Davidson Inc. announced April 17 will cost the manufacturer up to $25 million in severance packages and other charges, the company said in a regulatory filing April 22.
Harley-Davidson plans to cut 370 workers from its unionized production workforce and 360 of its nonproduction employees. The company anticipates it will record approximately $20 million-$25 million in charges connected with the workforce reductions, all of which involve severance benefits. The company believes the majority of all such charges will result in cash expenditures, although the timing of the expenditures will vary. The company anticipates it will record all the charges in 2008.