Hertz - Hertz to cut 4K jobs

http://www.marketwatch.com/news/story/hertz-cut-more-4000-jobs/story.aspx?guid=%7BD8B09259-970A-4C3E-8D93-A3CCEEEE42AB%7D&dist=msr_10

If they're cutting jobs, why don't they cut rates first? It seems like they're still higher priced than competition. They're already running cars longer than they used to it seems (I've gotten a few cars with 25K+ miles on them recently) - their inventory costs don't fluctuate...anyone seen reductions in rates instead of reductinos in staffing (which is clear at some rental return lots).

a 94% loss in revenue is huge... (http://www.airportbusiness.com/web/online/Top-News-Headlines/Car-rental-companies-cut-back-to-keep-up/1$24888)

http://www.marketwatch.com/news/story/hertz-cut-more-4000-jobs/story.aspx?guid=%7BD8B09259-970A-4C3E-8D93-A3CCEEEE42AB%7D&dist=msr_10

If they're cutting jobs, why don't they cut rates first? It seems like they're still higher priced than competition.

Well, given they are basically giving cars away where I am renting, it seems they have cut already. Not surprising, really, given the amount of cars they seem to have parked in YYZ.

This is not a surprise at all. My company, as are many others, has a travel freeze on now -- so last year while me alone would have rented 10 cars in the first 3 months of the year will now rent zero.

I returned a car to the San Antonio airport this morning and the staff were commenting on the cuts. The staff were all polite and friendly but also eager to comment on the staff reduction.

The service has changed as well, and they say it is part of their cost cutting: The did not provide a receipt at carside when I returned the car: instead I was instructed to go into the office and show them there the handwritten account of my mileage and fuel status. They printed out a receipt for me there.

Also, they said they were running 1/2 as many shuttle buses.

If they're cutting jobs, why don't they cut rates first? It seems like they're still higher priced than competition. They're already running cars longer than they used to it seems (I've gotten a few cars with 25K+ miles on them recently) - their inventory costs don't fluctuate...anyone seen reductions in rates instead of reductinos in staffing (which is clear at some rental return lots).



Ummmm why would they want to cut rates and have even less revenue coming in :confused: Unless you mean cut the rate of pay for the staff first ^ But then again from all accounts Hertz staff seem to be paid poorly anyways.

I'd start at LaGuardia then work my way into Manhattan.

In a lot of places I've been looking to rent cars over the next 2 months, Hertz is still more expensive (even with discount CDPs) than National and Avis - whom I consider to be on-par competitors. It seems like they'd do more to match the National/Avis rates - especially for longer rentals.

It seems to be that cutting overhead (wages) is much more plausible of a business plan that cutting revenue (rates). Just my humble opinion.

It seems to be that cutting overhead (wages) is much more plausible of a business plan that cutting revenue (rates). Just my humble opinion.

I would agree with that in general...it just seems that in a business environment that they are in (with such perishable inventory that isn't truly differentiated from their price-sensitive competition), you'd think that they'd at least bring down their rates to shift demand to their product from their competition. Clearly service & "newer" vehicles isn't cutting it...

http://www.marketwatch.com/news/story/hertz-cut-more-4000-jobs/story.aspx?guid=%7BD8B09259-970A-4C3E-8D93-A3CCEEEE42AB%7D&dist=msr_10

If they're cutting jobs, why don't they cut rates first? It seems like they're still higher priced than competition. They're already running cars longer than they used to it seems (I've gotten a few cars with 25K+ miles on them recently) - their inventory costs don't fluctuate...anyone seen reductions in rates instead of reductinos in staffing (which is clear at some rental return lots).

a 94% loss in revenue is huge... (http://www.airportbusiness.com/web/online/Top-News-Headlines/Car-rental-companies-cut-back-to-keep-up/1$24888)

They might not have to cut jobs......

I have a cost cutting suggestion that might work. Why doesn't the CEO take a cut in pay. He has two jobs, surely his Walgreens salary could make up for his loss of Hertz salary. I bet his goal for 2009 is to see how many people he can put of of work at Walgreens and Hertz, I bet he does'nt give a hoot about staff.

They might not have to cut jobs......

I have a cost cutting suggestion that might work. Why doesn't the CEO take a cut in pay. ... I bet he does'nt give a hoot about staff.

Or a hoot about customers. Loyal ones.