Harley-Davidson confirms layoffs as company works to stabilize business
Harley-Davidson has confirmed a reduction in force impacting its global workforce, as the company navigates declining sales, ongoing restructuring, and broader economic pressures.
A company spokesperson said employees were notified earlier this week but declined to provide details on how many workers were affected or where the cuts occurred, according to reporting from multiple outlets, including Wisconsin Public Radio and Spectrum News.
“We can confirm that some employees have been notified of a reduction in force that is impacting our global workforce,” the spokesperson said.
Challenging backdrop
The layoffs come after a difficult 2025 for Harley-Davidson, which reported a $29 million operating loss, with a 12% year-over-year global motorcycle sales drop, including North America, where sales were down 13%.
In a February earnings statement, CEO Artie Starrs pointed to ongoing efforts to reset the business.
“As we close out a challenging year for the company, we are taking deliberate actions to stabilize the business, restore dealer confidence and align wholesale activity with retail demand,” Starrs said in February.
The company is also facing additional cost pressures, including tariffs it expects could total $75 million to $105 million in 2026.
Aligning supply with demand
For dealers, the restructuring signals continued efforts by Harley-Davidson to better align production and wholesale shipments with retail demand — a key issue across the powersports industry over the past two years. The company has been working to reduce excess inventory and improve dealer profitability, even as overall unit sales have softened.
Cost focus
The workforce reduction follows the appointment of Starrs as CEO in August 2025 and reflects a common early step in leadership transitions.
“When new CEOs come in, cost cutting is generally one of the first things that they do,” said Margaret Hughes-Morgan, a strategic management professor at Marquette University, in comments reported by Wisconsin Public Radio.
Labor and facility impact
It remains unclear which parts of the business were affected. However, union officials said manufacturing workers in Wisconsin appear unaffected so far. Brad Dorff of the United Steelworkers said none of the more than 500 union members at Harley-Davidson’s Milwaukee-area facilities — including Menomonee Falls — were impacted by the layoffs.
“It’s my understanding that this is affecting the entire corporation,” Dorff said in media reports, adding that he is monitoring for potential future changes.
Dealer outlook
While details remain limited, the move underscores ongoing pressure across the heavyweight motorcycle segment and reinforces Harley-Davidson’s focus on tightening supply, controlling costs, and rebuilding dealer confidence.
For dealers, the key takeaway is that Harley-Davidson’s restructuring efforts are continuing — with an emphasis on aligning inventory and retail demand as the company works to return to sustainable profitability. About a dozen dealers closed their doors in 2025, and the trend has continued into 2026 with more consolidation in the first quarter.
