The slowdown in travel continues to pummel Hertz.
ESTERO — Rental car giant Hertz Global Holdings continues to struggle to gain traction amid the travel business shutdown caused by the coronavirus pandemic. The latest: it recently laid off some 10,000 employees — more than 25% of its worldwide workforce of 38,000 people.
The terminations were effective April 14 for non-union employees and April 21 for union employees, according to a public company document Hertz filed with the Securities and Exchange Commission. The latest layoffs come soon after the Estero-based company made other cost-cutting moves, including substantially reducing capital expenditures; consolidating local rental locations in the U.S. and Europe; and reducing executive pay.
But in the latest SEC filing the company states it has continued to experience increased rental cancellations and declining forward bookings. “In response to these unprecedented conditions and the uncertainty regarding the duration of the impacts, Hertz has taken proactive and aggressive actions to manage costs and reduce capital expenditures,” the filing states.
The company, in the filing, adds that it expects to incur an aggregate of about $30 million in costs relating to the layoffs, including some $28 million in severance or termination payments and $2 million in benefits costs primarily relating to healthcare.
Hertz posted $9.8 billion in revenue in 2019.