Harley-Davidson To Downsize Salaried Workforce By 5 Percent Before Year End

hdfacilityAs reported during yesterday’s Harley-Davidson 3rd quarter results announcement, the company intends to reorganize its operations and to lighten up its workforce.

The management decision is consecutive to Harley-Davidson worldwide retail motorcycle sales in the third quarter down 4.5 percent, US sales down 7.1 percent compared to the year-ago quarter, with the overall U.S. industry also down for the same period.

Harley-Davidson said it will incur up to $25 million in employee separation and reorganization costs as it cuts production and reduces workers. The cuts by the end of the year amount to 5% of the company’s salaried workforce or about 225 employees. Harley-Davison didn’t disclose specific locations in the US and abroad for the job cuts. The company employs 1,024 salaried workers at its Milwaukee headquarters and 3,246.

“We continue to effectively navigate a fiercely competitive environment and an ongoing weak U.S. industry,” said Matt Levatich, Harley President and CEO. “We are pleased with the positive results and the enthusiasm we’ve seen for our Model Year 2017 motorcycles, featuring the new Milwaukee-Eight engine. We are confident that the entire line-up will drive retail sales growth for the remainder of 2016 and position us well heading into the Spring riding season next year.”

22 Responses to “Harley-Davidson To Downsize Salaried Workforce By 5 Percent Before Year End”


  1. 1 P. Corso Oct 20th, 2016 at 10:33 am

    Sad

  2. 2 Danny Oct 20th, 2016 at 10:34 am

    They keep the temps and fire those full time on a salary. Capitalism at work.

  3. 3 Rick Meister Oct 20th, 2016 at 10:38 am

    I don’t see any improvement for Harley in the short term (2 years) Polaris is going to push and push hard to help the Harley’s downtrend. They just need a couple of new great Indian/Victory models to increase the bleeding. Triumph will also steal some sales…

  4. 4 mkv Oct 20th, 2016 at 10:43 am

    Dealers are going to use this as an excuse to drive up prices, thus equaling even less sales.

  5. 5 rebel Oct 20th, 2016 at 11:02 am

    one of my customers just bought a brand new left over 2015 sportster from the local dealer for only $8500, what a steal right?

  6. 6 MDSPHOTO Oct 20th, 2016 at 11:47 am

    So I guess that 47% increase in advertising spend didn’t work out so well. Hopefully, some of those salaried employees that came up with that idiotic marketing plan are getting, ummmm, reorganized!

  7. 7 gunney67 Oct 20th, 2016 at 1:34 pm

    “We are confident that the entire line-up will drive retail sales growth”
    if they are so “confident” why the lay offs ? excuse to get rid of higher paid staff ?

  8. 8 Woody's Oct 20th, 2016 at 6:25 pm

    One of our industry giants firmly believes that when you can barely make the bills it’s the BEST time to double your advertising. Assuming you have an available product that’s worth owning, a burst of advertising will most always pay for itself and more. As for layoffs, I’m sure there would be even worse comments if they DIDN’T lay off salaried workers commensurate with the hourly cuts announced recently, i.e. no matter what they do, folks will make fun of them. This isn’t some “affordable motorcycle act” where you can print their own money-it’s a business that has to both make a profit and cowtow to shareholders who don’t care if they lay off everybody but the museum help, as long as the stock price goes up. Hard to serve two (or more) masters. (I mention Obamacare only because everybody they keep costs $1k+ in mandatory health insurance overhead, and it’s illegal now to offer less)

  9. 9 Pat h Oct 20th, 2016 at 7:31 pm

    So glad some are so happy to see tax paying us family’s about to lose their jobs

  10. 10 Woody's Oct 20th, 2016 at 10:07 pm

    Who’s supposedly happy about it?

  11. 11 Rick Dorfmeyer Oct 21st, 2016 at 7:08 am

    I wonder why no one has a plan to increase motorcycle popularity. Instead we fight over market share in an ever shrinking market.

    We must compete with auto manufacturers that have developed a positive lifestyle image in lower priced vehicles. Even Mercedes sales are up.

    Harley seems to have forgotten that it is their American story that saved them from extinction, and now have gone down the same ole push the iron program that got them in trouble to start with. While the Milwaukee 8 is a giant step forward for HD, the brand still lags light years behind like priced metric models in handling, reliability, performance. Harley, it ain’t about the “Iron”, it’s about the story.

  12. 12 HD Rider Oct 21st, 2016 at 7:31 am

    Merry Christmas

  13. 13 been there done that Oct 21st, 2016 at 8:20 am

    the scene is cooling off
    it was just a matter of time

  14. 14 Hillbilly Jim Oct 21st, 2016 at 11:34 am

    Not sure I’d call the new 8 valve engine a step forward or making them handle like an Asian motorcycle a change for the better. Same with the counter balanced engines. The feel of the power pulse that comes with a big twin Harley is why many of us have been riding them for half a century. The fact that they do not handle like a CB 750 is why I have 4 of them. I have sons and grandsons waiting with their tongues hanging out to see who inherits what. It’s a family tradition and I’d hate to see that change.

  15. 15 Clyde the glide Oct 21st, 2016 at 11:51 am

    Constant refinement is good, but not a real reason to step up and buy a new Harley Davidson motorcycle. The 107 was long overdue, and so are new models Unfortunately if you want something different in the V-twin you have to go to Indian or Polaris.

  16. 16 hark Oct 24th, 2016 at 8:20 am

    H-D spent a small fortune trying to recruit younger riders. In my opinion while doing this they lost many core riders. In addition stock holders are a problem…they want returns…one more thing…H-D has now done away with State HOG Rallies. Florida will be the last rally in the USA this weekend. They are now going to Regional Rallies. Sometimes I wonder if those college educated CEO’s really understand us that ride?????

  17. 17 Ride On Oct 24th, 2016 at 8:21 am

    The Big 3 are having trouble keeping customers. When they get too big, they become arrogant. I’m speaking of Wal-Mart, McDonalds and Harley-Davidson. Now others are taking bites from them. This will take them back to reality and start servicing their customers (again) instead of dictating.

    Ride On

  18. 18 Ed Oct 24th, 2016 at 11:46 am

    What a pro HD post lambasting Obamacare? I can’t believe it. If you had any idea about the facts then I’d comment. But you don’y. And I’m sure you have no idea American is under siege by our greed filled run a muck health care system in the US. You know the one that is milking us for over $3T per year? It’s now $10K per person. Which is why Obamacare is hurting. Outrageous health care prices that no insurance program can handle.

    Anyway HD is toast. Younger potential buyers are not wallet filled Baby Boomers who have come and gone.

    BMW’s sales are on an upswing. What’s that tell you?

    The new M8 will be a good profit maker for HD? From all that I have read it’s a better engine but will not stop the blood letting at HD.

  19. 19 1550tc Oct 24th, 2016 at 1:24 pm

    Music for wall streets years up 13% last week 🙂

  20. 20 Blackmax Oct 24th, 2016 at 5:25 pm

    See i can never understand this ???
    if you are not making a profit, with 53% of the heavyweight market something is wrong !
    Overpriced ? Definitely ! Lower cost & make it competitive !!
    You’ve redesigned the engine & there is a lot more you can do ?
    Laying off workers would be a last final step !!!
    Condolences to ALL of those who have lost and/or getting ready to lose their jobs !
    This is the great American Icon that everyone admires
    If I had an H-D tattoo I’d cover it up or burn it off in shame !!!

  21. 21 Woody's Oct 24th, 2016 at 6:43 pm

    Ed – you’d comment, but you won’t, but you did? I know that cost and price are two different things, and there used to be no law setting minimum insurance plan coverage while ordering you to buy it.

  22. 22 Hobo Tom Oct 25th, 2016 at 9:40 pm

    Okay, let’s be honest here the price and the market who wants their bikes? I believe HD had the right idea to make an electric bike. I believe this would have opened up new markets from beginners to the older ride. I think the untapped woman’s market is just waiting. If HD used their giant dealer net work to start a ride and swap battery program would make the family grow. HD must start a new product line before it is too late. Yes Ford and Chevy kept their Mustang and Camero but they have new products too. I hope HD is reading his.

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Cyril Huze