Harley-Davidson Announces Rewire Progress, New Operating Model and Leaner Organization to Drive Focus and Efficiency
“The Rewire is progressing very well and substantial work is being done to eliminate complexity and get Harley-Davidson on a path to winning. Our new operating model is simpler, more focused and enables faster decisions across the entire company,” said
Changes to the company’s operating model under The Rewire include all areas of the business globally, from commercial operations to corporate functions. Changes have also occurred in the company’s leadership, among them, Chief Financial Officer
Overall, the streamlined structure requires approximately 700 fewer positions across the company’s global operations with approximately 500 employees expected to exit the organization through 2020.
The key elements of The Rewire:
- Enhance core strengths and better balance expansion into new spaces
- Prioritize the markets that matter
- Reset product launches and product line up for simplicity and maximum impact
- Build the Parts & Accessories and General Merchandise businesses to full potential
- Adjust and align the organizational structure, cost structure and operating model to reduce complexity and drive efficiency to set Harley-Davidson up for stability and success
The company plans to share a comprehensive summary of The Rewire actions and financial impacts when it releases its Q2 results later this month. The Rewire will set the foundation for a new 2021-2025 strategic plan which is expected to be shared in Q4.
Cautionary Note Regarding Forward-Looking Statements
The company intends that certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statements will include words such as the company "believes," "anticipates," "expects," "plans," "may," "will," "estimates," "likely" or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments, or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this press release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release, and the company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, uncertainties regarding the company’s ability to effectively execute the company’s restructuring activities within expected costs and timing and to successfully implement the elements of The Rewire.
Source: Harley-Davidson, Inc.