Hertz Israel is slashing its workforce. Sources inform ''Globes'' that the company has fired 45 employees, including senior staff, one of whom was the marketing manager.
Hertz Israel general manager Daniel Palti ordered the lay offs because of NIS 28 million in losses. At last Thursday’s management meeting, he announced that 40 employees would be laid off, but did not say who. At an emergency meeting of sales and service centers yesterday, management announced some of the names.
Sources at the company told “Globes” that Hertz Israel’s losses had been ballooning for a long time. They said, “This should have been stopped earlier,” before lay-offs became necessary. The lay-offs amount to a tenth of the company’s workforce of 440.
Hertz Israel recently announced an increase of its vehicle fleet for leasing customers, suggesting that the company’s losses are in the rent-a-car sector. Hertz Israel is controlled by Volvo, Honda and Jaguar importer Mayer Cars and Trucks Ltd.. Hertz Israel has 18 branches across Israel five logistics centers and a chain of garages for customers and leasing operations.
Hertz Corporation has 7,000 branches in 160 countries. US carmaker Ford Motor Company (NYSE:F) acquired Hertz in 1994, and sold it a private consortium that includes Merrill Lynch Global Private Equity, Carlyle Venture Partners and Clayton, Dubilier & Rice for $15 billion.
Hertz Israel was unavailable for comment by web-posting.
Published by Globes [online], Israel business news - www.globes.co.il - on August 1, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006