Hertz to cut more than 4,000 positions

PARK RIDGE, N.J. -- Rental car company Hertz Global Holdings said Friday it will eliminate more than 4,000 jobs worldwide as it further cuts costs amid slowing demand.

The company expects to save $150 million to $170 million this year and take a related fourth-quarter charge of $20 million to $25 million.

Hertz already has trimmed its work force by 22% in the last two years. The new reductions will bring staffing to 32% below August 2006 levels. According to CapitalIQ, the company currently has about 29,350 workers in total, who operate about 8,100 locations in 144 countries.

The company said the latest round of eliminations, which will take place in its fiscal 2008 fourth quarter and first quarter of 2009, will come in its car and equipment rental operations as well as corporate and support areas. The reductions will occur across all regions.

Chairman and Chief Executive Mark P. Frissora said in a statement that Hertz is still committed to its global airport and off-airport car rental and equipment rental businesses and will add the "necessary resources" when operating conditions get better.

The rental car industry has been pressured as economic conditions have caused both businesses and consumers to curb their corporate and personal travel.

In November Hertz suspended its financial guidance and said it no longer expects to meet annual earnings targets set in August. That same month the Park Ridge, New Jersey-based company prepared to cut 4.7% of its work force and close some of its locations.

Hertz's liquidity was about $4.9 billion as of Dec. 31, 2008. Frissora said Hertz estimates fourth-quarter total net cash flow of about $1.75 billion.

Shares of Hertz fell 53 cents, or 9.8%, to $4.86 in afternoon trading. The stock, which peaked a year ago at $15.32, has been slowly recovering since bottoming at $1.55 in November.