is searching for a new finance chief as it looks to overhaul its business in response to declining demand for its motorcycles and a financial hit from the coronavirus pandemic.
The Milwaukee-based manufacturer Thursday said company veteran John Olin, who has been chief financial officer since 2009, left the role and the business. Vice President and Treasurer Darrell Thomas was named interim CFO while Harley-Davidson conducts a search for a permanent successor.
“Significant changes are necessary, and we must move in new directions,” Chief Executive Officer Jochen Zeitz said.
Mr. Zeitz, who was brought in earlier this year to replace former CEO Matt Levatich, also announced Thursday that Harley-Davidson would cut about 700 jobs globally—or about 13% of its workforce—as part of a broader revamp.
Harley-Davidson in recent years has struggled with slowing customer demand and import tariffs in the U.S. and Europe. The coronavirus pandemic exacerbated some of these challenges when the company temporarily stopped production and most of its dealerships closed.
Harley-Davidson may want a finance chief with restructuring experience who can help transform the business, said Joe Altobello, an equity analyst at investment bank
“They need someone with international experience, someone who has gone through a restructuring process. This is not a job for someone who is new to the role,” Mr. Altobello said.
The company in April announced it would lower capital expenditures, suspend share repurchases and cut expenses. It also is shrinking its geographic footprint and its model range to simplify operations and bring down costs. The company will account for about $42 million in restructuring costs in the second quarter, Harley-Davidson said.
New chief executives often choose to bring in their own management teams, including a finance chief, especially in situations where there is a strategic shift under way.
“Mr. Zeitz will look for his own people,” said Gerrick Johnson, an analyst at BMO Capital Markets Equity Research, the research arm of the investment bank.
Changes at the top could involve recruiting executives with different backgrounds and management styles. “The prior management team seemed to rely on the heritage of Harley a little too much without a lot of new, forward thinking,” Mr. Johnson added.
A new finance chief would have to be knowledgeable about financial services businesses, given that Harley-Davidson has its own financing arm, said Jaime Katz, an analyst at Morningstar Research Services LLC, a provider of investment research.
The company didn’t immediately respond to questions about its CFO search. It plans to provide more details on its strategy overhaul later this month when it reports earnings.
Write to Nina Trentmann at [email protected]
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
