Harley-Davidson is a famous brand in the motorcycle business. It has been linked to American motorcycle culture since its inception in 1903. Harley-Davidson has faced various obstacles in recent years. Despite its long history, the business has worked to adapt to a fast-changing market environment. It was done through restructuring and cost-cutting measures.
In June 2024, Harley-Davidson announced the layoff of around 150 employees. It is part of “organizational adjustments” per the company’s strategic plan, Hardwire 2. This action shows the company’s ongoing struggle to streamline operations. Since it adapts to changing market conditions,
Layoffs are not new for Harley-Davidson. They have been a repeating topic throughout the company’s history. It reflects more significant issues in the motorcycle industry and the firm itself. In this article, let us learn more about the layoffs at Harley-Davidson.
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Harley-Davidson’s Layoffs 2024
In June 2024, Harley-Davidson announced that it would be laying off about 150 employees. This move attempted to overcome the company’s financial and strategic challenges.
According to the business, these layoffs are part of “organizational adjustments.” They aim to increase cost productivity and allow the company to focus on vital opportunities. There is a lack of specific information about which business operations or locations are affected. However, the reduction is in line with the goals specified in the Hardwire 2 plan, which was launched in 2021.
The Hardwire 2 plan focuses on improving Harley-Davidson’s core business and exploring new potential in electric motorcycles and other growth sectors.
The layoff decision shows a shift toward streamlining operations and using resources more effectively. This is vital for a company dealing with intense rivalry and an evolving market landscape.
Harley-Davidson is one of Milwaukee’s largest private-sector employers. The company has around 2,280 local employees and over 6,000 worldwide, so these layoffs will significantly impact Harley-Davidson.
Layoffs Over the Years
It’s essential to look at Harley-Davidson’s recent history of job cuts. This will help us better understand the context of the 2024 layoffs, including what the business did during the COVID-19 epidemic and the recession that followed.
Layoffs in 2020:
The pandemic had a significant impact on Harley-Davidson. It caused massive layoffs and restructuring efforts. In April 2020, the company stated that the pandemic had forced most of its global production employees into temporary layoffs. This decision came as the business was dealing with decreased retail demand and financial difficulties caused by COVID-19.
To add to its issues, in July 2020, Harley-Davidson announced plans to cut 700 jobs, about 12 percent of its global workforce. This was done as part of CEO Jochen Zeitz’s efforts to bring back the struggling motorcycle maker.
This move was part of a larger strategy called “The Rewire.” It aimed to simplify operations and focus on key markets. The layoffs affected 500 current employees. Also, the Chief Financial Officer, John Olin, departed. The restructure was projected at around $50 million, with $42 million spent in the second quarter of 2020 alone.
Zeitz’s restructuring actions were in response to a long-term revenue decline and the issues posed by an elderly customer base. The company’s U.S. sales had been declining for five years. The pandemic worsened the problem even more, resulting in major production cuts and layoffs at plants in Wisconsin and Pennsylvania.
Layoffs in 2022:
In November 2022, Harley-Davidson announced another round of layoffs. It’s due to changes in their supply chain logistics. The company’s vendor, Syncreon, has announced the closure of operations at a Harley-Davidson warehouse in York County, Pennsylvania. It had affected about 637 employees. This shift was caused by Harley-Davidson’s move to a new third-party logistics provider. The shift came right before the holiday season. So, it increased the issues faced by affected employees.
The repeated layoffs at Harley-Davidson reflect broader challenges in the motorcycle industry and the company’s efforts to adapt to changing market conditions. The global motorcycle market has been under pressure due to shifts in customer tastes, rising competition, and economic uncertainty.
Harley-Davidson, in particular, has struggled with an aging customer base and a decline in demand for heavyweight motorcycles, which have been its core market.
Conclusion
Harley-Davidson has been making significant strategic changes in response to many problems. Yet, these strategy moves bring short-term issues such as layoffs and restructuring costs. CEO Jochen Zeitz pointed out the challenges created by these job reductions. He noted that it is essential for the company’s long-term health, even though it has hurt morale.
The company continues to implement its strategic goals. However, it has to balance its need for operational efficiency against the impact on its staff and brand reputation.
Harley-Davidson’s future success will depend on its ability to successfully execute its strategic plans. It also depends on maintaining a solid relationship with its core customer base while expanding into new markets and product lines.
