Crunch-hit Harley Davidson to cut 1000-plus jobs in 2009 and 2010

Slowdown in sales has forced motorcycle giant Harley-Davidson to do away with as many as 1,100 jobs over two years. Troubled times have made the company even to close down some of its facilities while consolidating the remaining ones.

Harley Davidson also said that it would be cutting down on shipments this year. Shipments in 2009 wil be cut between 264,000 and 273,000 to cope with the falling market place, making it a drop of around 13 per cent compared to the previous year.

Worldwide Harley Davidson retail sales fell by 13.1 per cent in the fourth quarter, with sales in the US dipping close to 20 per cent. Harley Davidson said worldwide retail sales fell 7.1 per cent during the full year.While overall profit fell 58 per cent to $77.8 million for the quarter ended December 31, compared with $186.1 million last year, the company posted a drop in revenue by 6.8 per cent to $1.29 billion.

The decisions have come about as a follow up to its falling sales numbers. Harley Davidson company said that its fourth-quarter profit plummeted to around 60 per cent. The company is so desperate that it has lined up measures to consolidate two engine and transmission plants in its home base in Milwaukee into its Menomonee Falls facility in Wisconsin. Further, it is also cutting down staff at its paint and frame operations in its York plant. The distribution facility at Franklin in Wisconsin is being closed down.

Further again, Harley will also shut down its domestic transportation operation, which includes its fleet of truckers It will be going in for an outsourcing plan on this front. Harley Davidson has been stung by the rapid downturn in motorcycle demand. The company believes that the financial slowdown has forced many enthusiasts to put off their purchasing plans, making sales plummet in a major way.