Hertz to Lay Off 10,000 Employees as Business Slumps During Pandemic

Hertz, looking to cut costs during the coronavirus pandemic, will lay off 10,000 employees in North America.
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Hertz Global Holdings  (HTZ) - Get Report, the U.S. car rental company, said it would lay off 10,000 employees in North America as it looks to cut costs amid a downturn in business during the coronavirus pandemic.

Hertz, in a filing with the Securities and Exchange Commission, said it would incur costs of $30 million related to the layoffs, which began effective April 14 for nonunion workers and April 21 for union workers.

The company had about 38,000 as of the end of 2019.

It was reported last month that Hertz was discussing financing options with banks as it looked to weather the slump in travel caused by the coronavirus.

Bloomberg reported Hertz has been in discussions with multiple banks, led by Barclays, on its options, which include a first-lien loan, second-lien financing or collateralizing its rental-vehicle fleet.

The company also has asked the U.S. Treasury Department for a loan, according to the report from Bloomberg. 

“Like the rest of the global travel sector, Covid-19’s impact on Hertz arrived swiftly, and the reversal in customer demand has been significant,” Chief Executive Kathryn Marinello said in a statement in late March.

Activist investor Carl Icahn owns a 39% stake in the car rental company.

The stock was down 3.66% to $4.48 in premarket trading Tuesday.

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