Harley-Davidson Inc. will cut an additional 1,000 jobs after profit plunged 91% in the second quarter from the previous-year period, the company said July 16.
The layoffs are in addition to a previous workforce reduction of approximately 1,500 employees earlier in the year. Included in the layoffs are about 300 salaried positions. Net income for the quarter totaled $19.8 million, compared with $222.8 million in the year-earlier period. Worldwide retail unit sales of new Harley-Davidson motorcycles were down 30.1%.
Retail new Harley-Davidson motorcycle sales in the United States fell 35.1% and declined 18.2% in international markets compared with last year's second quarter. Industrywide retail sales of heavyweight motorcycles in the United States declined 48.1% for the same period.
"While the underlying fundamentals of the Harley-Davidson brand remain strong and our dealers' retail motorcycle sales declined less than our competitors, it is obviously a very tough environment for us right now, given the continued weak consumer spending in the overall economy for discretionary purchases," said Harley-Davidson, Inc. President and CEO Keith Wandell.