Harley-Davidson faces 26% revenue slide, signals workforce reductions
It was in August last year when iconic motorcycle brand Harley-Davidson (H-D) announced the appointment of its new CEO, Artie Starrs. Now entering his first full year at the helm, Starrs acknowledged that the past year was a challenging one for the company. Revenue fell by a steep 26%, while global sales also continued their downward slide.
What does this mean for Harley-Davidson’s path back to profitability? According to Starrs, the immediate priority is to reduce costs, which is a move that may include workforce reductions as part of broader restructuring efforts.
Harley-Davidson Pan America 1250
“We are conducting a rigorous, end-to-end review of our cost base and operating expenses, supported by third-party specialists. Our current corporate overhead, manufacturing capacity and overall operating expenses are built for materially higher volumes than today’s demand, and we will be addressing this mismatch head-on,” said Starrs.
Union workers in Milwaukee are aware that Harley-Davidson’s cost-cutting measures could result in job losses, including among white-collar employees. According to a report by the Milwaukee Business Journal, which reached out to the United Steelworkers Union, some positions may indeed be affected as the company moves forward with its cost-reduction initiatives.
“We’re aware they’re talking about headcount reductions,” said Brad Dorff, Steelworkers sub-district director for metro Milwaukee. Dorff added that the potential layoffs would not be limited to a single segment of the workforce. In addition to production roles, salaried staff could also be impacted by the planned reductions.
Is this the beginning of another KTM-like situation? Let’s hope it doesn’t come to that.
