AGENCIES, Milwaukee: Several automakers in the US have already gone into hibernation as Covid-19 pandemic has made operations unsustainable. Now, it has hit the white collared staff of two-wheeler maker Harley-Davidson (HD) that has already shuttered its manufacturing plants
On Wednesday, HD announced that its executive leadership will take a 30% pay cut and most of its US-based employees will take pay cuts of between 10% and 20%.
Acting president and CEO Jochen Zeitz and the board of directors will forgo salary and cash compensation. The bike maker also says it has implemented a hiring freeze and there will be no merit pay increases for 2020.
“The effects of COVID-19 on economies around the world have been swift and unprecedented. It is essential for us to respond quickly, adapt and position the company to manage near-term challenges while preparing to re-energize the business for the recovery and beyond,” Zeitz said.
Harley-Davidson has temporarily laid off most of its global production employees and implemented salary cuts in a bid to lower costs as the coronavirus pandemic has hurt its business.
The announcement comes weeks after the motorcycle maker withdrew its earnings forecast for this year, saying pandemic-induced disruptions could dent its ability to supply and sell motorcycles.