Harley-Davidson Inc. announced an overhaul of its global operating model that “is simpler, more focused and enables faster decisions across the entire company,” according to Jochen Zeitz, chairman, president and CEO.
As a result, the Milwaukee-based manufacturer will reduce its global workforce by about 700 people and take a restructuring charge of approximately $42 million in the second quarter of 2020, the company said in a July 9 news release. About 500 positions will be eliminated through 2020.
At the end of 2019, the company had approximately 5,000 employees in its motorcycle segment and 600 in financial services.
The overhaul is part of what the motorcycle manufacturer in April dubbed “The Rewire,” a series of steps leading to a new five-year strategic plan. Harley-Davidson said it would provide more details when it releases its second-quarter results, slated for later this month.
Harley-Davidson also announced a change in its financial leadership. CFO John Olin is gone from his role and has been replaced on an interim basis by Darrell Thomas, vice president, treasurer. Olin had been with the company for about 17 years.