Hertz announces 10,000 layoffs due to COVID-19 crisis

Posted at 7:28 PM, Apr 21, 2020

ESTERO, FL. — In a report submitted to the U.S Securities and Exchange Commission, Hertz announced it would be reducing its North American workforce.

Approximately 10,000 employees will be laid off, across all departments, amid the Coronavirus crisis.

"In response to these unprecedented conditions and the uncertainty regarding the duration of the impacts, Hertz has taken proactive and aggressive actions to manage costs and reduce capital expenditures," said Hertz in the 8-K filing.

The car rental giant, headquartered in Estero, says it has experienced increased rental cancellations and declining future bookings.

With a low demand, hundreds of Hertz rental cars remain parked at the Hertz Arena.

In a statement to FOX 4, Hertz said it is taking steps to help those affected by the lay-offs:

"We're partnering with other companies that are actively hiring to fast track job applications for former and furloughed hertz employees, while also covering their healthcare premiums to varying degrees through these transitions."

Terminations will take effect on April 14 for nonunion employees, and April 21 for union employees.

According to the 8-K SEC report filed Monday, Hertz expects to incur approximately $30 million in costs related to the job cuts, including approximately $28 million in severance pay and approximately $2 million in benefits.

Mancan, a staffing agency in Fort Myers, says while there has been a sharp decline in work demand, there are still companies that are hiring.

"They range anywhere with us from light manufacturing on the healthcare end, to agriculture, and administrative," said Deborah Mason, VP for Mancan Florida Divison.

Mason says their employment placement has gone down to 30 to 40 percent since the pandemic began, but they continue to encourage job seekers and employers to contact them.

"We are an equal opportunity employer that can definitely help anybody that is looking for anything on a short term to a temp to hire position," said Mason.

To learn more about MANCAN, click here.