Only a day after Harley-Davidson's new CEO Artie Starrs relayed that he has a clear view of what needs to be done to rescue the legendary brand, there's a report that what the future holds are layoffs at the Motor Co. Not great, folks.
Yes, the report comes from the Milwaukee Business Journal, which followed up with Harley-Davidson after the recent investor call and presentation of its Q4 financial statements. And was for clarification on a handful of Starr's comments, but more specifically about his comments on cost reductions.
"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," Starrs stated on the call. Reducing operating expenses, however, can mean a lot of things, as there's plenty of space to find cost savings. But one that's routinely employed is through layoffs, which is what the Milwaukee Business Journal wanted to know.
Unfortunately, a Harley-Davidson spokesperson confirmed that was what is likely coming.
Confirming those layoffs, the person stated some of those cost reductions "will be in headcount reduction," i.e., layoffs. Likewise, when the outlet reached out to the United Steelworkers Union, they were already aware of talks about layoffs, though they also countered that some would be salaried staff, ergo likely white-collar jobs, too.
"We’re aware they’re talking about headcount reductions," Brad Dorff, Steelworkers sub-district director for metro Milwaukee, told the outlet, adding, "They pointed out that would also include salaried (staff)."
What this all looks like going forward, however, is still anyone's guess. Starrs didn't lay out his vision for the company as of the financial call, saying that his pathway would come later this year, but that he had a better sense of the company after the Q4 financials came through.
But it's clear that Harley needs a shot in the arm to better weather the uncertain storms of our era, as the economy has taken a nosedive, wage stagnation has only gotten worse, inflation is through the roof, interest rates are horrendous, and idiotic tariffs—along with anti-American sentiment abroad—have only made Harley's predicament ever more precarious.
We'll have to wait to see what's up with Harley's future plans, but hopefully the ship can get righted quickly, as a world without Harley ain't one I want.
