Harley-Davidson on Thursday stated it will lay off 500 staff members this yr as aspect of new Main Executive Jochen Zeitz’s efforts to revive the having difficulties motorbike maker.

As portion of the overhaul, Main Economical Officer John Olin will depart the corporation powerful instantly. Darrell Thomas, treasurer, will become interim main financial officer, it mentioned.

Harley-Davidson’s income have been declining for the past 5 a long time in the US, its major sector, as its infant-boomer purchaser base ages. The economic pain brought on by the coronavirus pandemic has even further dented retail desire.

In reaction to weak revenue, the Milwaukee-primarily based corporation has lower manufacturing, leading to 140 occupation cuts final month at its factories in Pennsylvania and Wisconsin.

The most current cuts are in addition to those layoffs, a business spokeswoman claimed.

Zeitz, who took around in February, is hailed for turning around the Puma brand’s around-bankrupt company.

His restructuring strategy, dubbed The Rewire, is aimed at making Harley a leaner and far more nimble organization. It seeks to reset products strains, concentrate on the company’s main strengths and prioritize rewarding markets.

“Significant changes are necessary, and we need to go in new instructions,” Zeitz reported.

Harley explained the actions declared on Thursday will lay the basis for a 5-year strategic approach to revive sales that the business expects to share in the fourth quarter.

In all, the restructuring will get rid of 700 positions globally. It will consequence in a $50 million restructuring charge in 2020, such as $42 million in the second quarter.

While the overhaul is expected to be finished by the close of the 12 months, Harley claimed it will probably bring about additional restructuring prices in 2021.

The company will deliver extra details of the economic effects in its next-quarter earnings report later this thirty day period.

Harley’s shares were flat in mid-afternoon buying and selling, at $25.58.