Dollar Thrifty announces workforce reduction

TULSA, OK – Dollar Thrifty Automotive Group, Inc. announced today that it has reduced its overall workforce by approximately 6 percent to adjust the company’s cost structure for current economic conditions. The reduction affected senior management – 30 percent reduction, headquarters staff – 15 percent reduction and the company’s field staff – 5 percent. The total workforce reduction involved approximately 400 employees.

“We are taking this difficult action not only in response to current industry conditions, but also as part of our long-term commitment to profitable operations in both good times and bad and to an organizational structure that remains flexible and well positioned to take advantage of opportunities as they arise,” said Scott L. Thompson, president and chief executive officer. “Today’s industry challenges have unfortunately required that we accelerate our efforts to realign our workforce and become more efficient.”

The moves announced today are expected to produce annual savings in the 2009 fiscal year of about $15 million. The company expects that the workforce reduction will also result in a charge in the fourth quarter of 2008 of approximately $4 million for estimated cash severance payments.