Harley-Davidson announced plans to lay off 169 workers from its Kansas City, Mo., plant. The layoffs represent about 21% of the workforce at the plant which produces Sportster, Dyna, Softail, V-Rod and Street models.
According to a report by the Milwaukee Business Journal, the layoffs will begin on May 11 and will continue through September.
“The shift is to align with our overall production needs for the facility, as well as the decision to source work performed in the Materials Velocity Center and certain related sub assembly work,” Harley-Davidson spokesperson Kristen Cunningham tells Business Journal. “This is not easy news to share, and was a decision made after careful analysis and consideration given to our long-term manufacturing and business strategy.”
The layoffs are somewhat of a surprise after Harley-Davidson reported double-digit earnings growth and a net profit of $844.6 million in 2014. It also doesn’t look very good when you consider the Street models for the Indian market are produced in India instead of in Kansas City. The decision makes sense for Indian consumers as locally-produced motorcycles are not subjected to high import tariffs but workers in Missouri may have a different opinion.
[Source: Milwaukee Business Journal]