Avis records $1bn loss, cuts 700 jobs
Car rental company Avis Budget Group Inc cut 700 jobs in the third-quarter and recorded a loss, before taxes, of more than $1 billion after writing down the value of certain assets, it said on Monday.
The company, which has been hit hard by slowing travel amid a weakening economy, also said 2008 revenue and profit would be “significantly lower” than previous estimates due to a drop in vehicle rentals.
“Declining travel volumes made the third quarter a more challenging operating environment than expected,” Avis Chairman and Chief Executive Ronald Nelson said in a statement.Â
Excluding write-downs of between $1.1 billion and $1.3 billion and other unusual items, Avis said it expects third-quarter pretax income of $87 million and revenue of $1.7 billion.
Avis also recorded restructuring charges of $11 million for the work force reductions, which are expected to save $50 million a year. READ AT THE TIMES OF INDIA
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