The car sales is gone....... SMT will never learn, they drive business away. GO figure. Glad I left. SO sad for all the employees, ALOT of people are going to have a cr-ppy Thanksgiving. But we have 4 presidents of the company.....
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Gil West’s latest decision: shut down Hertz Car Sales and let the entire retail team go, with just 11 days’ notice, right before the holidays. This man is a total failure and he is heartless.
As a Hertz shareholder, I find this treatment of employees unacceptable. Put the timing aside, I cannot support a leadership culture where the consequences of strategic decisions fall almost entirely on the workforce while executive leadership remains protected.
This isn’t just a business decision. It’s a reflection of leadership character and corporate values. And right now, Hertz is sending a very disturbing message about both.
Let’s call this what it is: a complete failure of leadership and a disgraceful way to treat the people who built and operated Hertz Car Sales.
More than 40 retail locations are being shut down, putting over 600 employees and their families in jeopardy, with November 20 as the reported closing date. And what have these people received? An announcement. No meaningful explanation of severance, no transition plan, no clear commitment to help the people whose livelihoods are being eliminated.
Meanwhile, let’s look at the priorities.
Hertz has spent money on high-profile marketing campaigns featuring names like Tom Brady and Beth Franklin, invested in software platforms and technology initiatives that employees have seen deliver questionable operational value, and continued building relationships with major third-party retail partners.
The company has expanded its relationships with major used-car retailers, including Carvana and other large distribution partners, while dismantling its own retail operation.
There is something fundamentally wrong when a company appears willing to invest in outside partners and initiatives while providing so little consideration to its own employees.
And then there is the financial performance.
On November 5, Hertz reported third-quarter results. Despite revenue growth, adjusted earnings per share missed analyst expectations by approximately 44%, adjusted EBITDA missed the low end of guidance by more than $40 million, and the stock plunged approximately 23% following the earnings announcement.
Yet the corporate transformation narrative continues.
CEO Gil West, surrounded by leadership brought in from the airline industry, gets to continue leading the transformation. More than 600 employees are left wondering how they will pay their bills next month.
Let’s not forget that these are the same people who worked long hours, dealt with difficult customers, generated revenue, managed inventory, protected the company’s interests and delivered results.
Over 600 livelihoods are being sacrificed in the name of a new strategy. What accountability exists at the executive level?
If the strategy succeeds, leadership gets to claim the victory. If it fails, the employees who had no say in these decisions have already paid the price.
What exactly is wrong with this picture?
Hertz can change its business model. It can close locations. It can pursue digital distribution and third-party partnerships.
But it should not abandon the people who helped build the business and then expect everyone to applaud its transformation.
Leadership is not just about presenting earnings calls and talking about shareholder value. It is also about taking responsibility for the human consequences of your decisions.
Shame on Hertz for the way this transition is being handled.
Interesting to keep it hush hush during the earnings calland wait. Gillybean had made it clear that only half the story is ever shared.
What happened to the expanded learning team/ambassadors that involved traveling the country and cost the company over $1.1 Million dollars?
The training “hubs” are rarely used. People hate the classes when required and 60% end up quitting anyway. Another brilliant idea in a “yes” culture because everyone is afraid to disagree with the Stone Age leaders.
Hertz is absolutely rudderless. Knee je-k reactions getting broader and more intense as the stock price circles the toilet bowl closer to ZERO. One day you’re told Car Sales is the way to glory and next day you’re told shut them down. What a joke. Glad I found a job at Sixt where growth and taking market share is the strategy for success.
@az Training, I am assuming you mean the wild initiatives that didn't do anything, they never let listened to most of us and SMT drove car sales in the ground when it could have been very successful(prior to Covid they were) SO sad for all the employees a week before Thanksgiving. Thanks Hertz for all you do for the employees that gave everything for your for the poorly thought out initatives- like the digital platform that they paid stupid money for that had more use for digital toilet paper than a platform.
Yet they have all these people in global learning and other areas that you barely see.
Just when I was dreaming about buying a stinky gross dirty car, someone had to wake me up.
At least there are teams still trapping around the country …when it could just be a teams call. Not to mention the extra layers of positions that are useless.
We see you vas team and vas “seniors.”
All car sales closing the 20 this month. Moving all sales too third party vendor. In house sales couldn't do the job needed with training provided. Lots of employees will be hurting for the holidays.
@as yeah. They told us today that all stores are going. All online now.
What happened with car sales? The whole entire division is getting removed?