Harley-Davidson Inc. expects to book between $20 million and $25 million in severance costs related to its planned staff cuts, according to a Securities and Exchange Commission filing on Tuesday.
On Thursday, Harley reported a 13 percent drop in domestic sales and slashed its full-year guidance, blaming the lagging economy for slowing sales of its iconic bikes. As a result, Harley said it planned to reduce motorcycle shipments to its dealers.
Harley is cutting about 370 unionized production employees and 360 non-production jobs. The planned reductions represent about 6.5 percent of the company's North American unionized production employees and about 10 percent of its North American non-production staff.
Harley said nearly all of the charges will result in cash expenditures, although the timing of those expenditures will vary. The company expects to complete the job cuts and take all of the related charges in 2008.
Harley shares fell 20 cents to $37.30.
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