Hertz Bankruptcy

[MikeOKC]

A nice Friday bombshell. I wonder how the local Hertz operations (which aren't small) will be touched by this.
My guess is a major way considering what the article says they're cutting.

Hertz To Eliminate More Than 4000 Positions

Maybe some will know as they leave their jobs at the local Hertz locations today.

[lasomeday]

Hertz is a poorly run company. They don't give raises unless you are a big dog. The management is driving that company under. They are making money but cutting back? The management is greedy!

[hipsterdoofus]

They put some policies in place over the last couple of years that in effect made it easier to get fired. Ended up affecting some of their best (and probably higher paid) employees - call times got really strict and such. I guess they are getting what comes to them. Stinks for the employees though.

[FritterGirl]

My husband works there. Most of the cuts were to over-seas ops. Few affected in OKC. Still a loss, no matter how you cut it. They have never bounced back since after 9/11, and the subsequent sale by Ford. Current ownership wants only to boost the stock price before they sell it off again. Not well-managed, but they have added some "perks" for employees that were not there before. Too many chiefs in Parkridge, NJ.

[drumsncode]

I would rate Hertz as one of the most insanely stressful places to work in the world, from a computer programming standpoint. It's so bad I considered writing a book about it while the memories were fresh, but time has faded a lot of the nuance. Maybe it's Post Traumatic Stress Syndrome, it wouldn't surprise me.

They have computer sytems that would make a billy goat puke, "tied together with bailing wire", extraordinarily poor documentation which makes maintenance even more stressful, and hardware and software from different vendors, which makes system integration even more of a nightmare.

Management has been wined and dined by their vendors for 30 years, and their decisions are not often based on choosing the best product. Rather they let themselves get blackmailed by vendors who also hold big corporate rental accounts with them. Example: If you don't buy our hardware this year, we'll rent from Avis. Yeah, blackmail is a wonderful tool if you're a vendor.

Years ago, HP came in and gave Hertz a big elaborate song and dance, convincing them they needed to use Unix for their Reservation Systhem front end with X-Terminals running the user-interface. This technology is so ridiculously specialized; how many programmers out there know how to program X-Windows and Motif, rather than Microsoft Windows?

So none of the Hertz programmers knew how to code this crap, but for HP, that was a fricking goldmine. They sold us training out the wazoo, hundreds of thousands of dollars worth of training. They sold us so many X-Terminals that I'm sure someone retired from the profit on that sale alone. Of course, these magical X-Servers that I believe cost $40,000 each needed OS upgrades every so often, and of course, only HP could seem to make the upgrade work properly. They created a goldmine for themselves, selling Hertz crap that they could barely maintain on their own.

This is what vendors do. They create helpless IT departments that need them year after year.

But hey, don't get me started!

Sadly, I get the feeling that other rental companies are just as bad.

[soonerguru]

drumsncode,

You should pursue the book. Corporate incompetence often makes for entertaining reading.

[jbrown84]

Glad to hear it won't affect OKC jobs much.

I wish they would reorganize and relocate the headquarters here.

[drumsncode]

Glad to hear it won't affect OKC jobs much.

I wish they would reorganize and relocate the headquarters here.

Nice try jbrown, but you are speaking from a basis of logic, and we're taking Hertz here. Even though it's much cheaper for them to do business totally in Oklahoma from every standpoint, they don't want to relocate their corporate headquarters because of the "prestige issue". That's basically what I was told over the years.

They used to be at 660 Madison Avenue, but they finally built this incredible building in Park Ridge, New Jersey in a very high-end corporate boulevard area, with all the other big names surrounding them, including BMW, which by the way, even had a traffic cop directing their employees out of work so no one would accidently hit one of their gorgeous cars. It's a whole other world up there!

The facility in OKC at the Data Center is mostly concrete and mostly ugly. The facility at Park Ridge is magnificent, including a gift-shop and some historical displays. Did I mention the custom-designed granite floor with a pattern that is supposed to faciliate "walking and thinking" as you ponder a business problem?

Or how about the cafeteria with superb food, or the fact that in the fall, they run vacuum cleaning machines over the fescue lawn because OMG, we can't have leaves cluttering up the entrance now, can we?

The whole facility is lavish, while the OKC buildings are bare bones.

It's a shame, because communication with management would be incredibly easy if everyone was in the same town, but this is Hertz, things aren't done that way. It's amazing, because with all its problems, Hertz stayed #1, but we used to joke that we were #1 only because everyone else was so much worse.

[FritterGirl]

The admin centers off of Memorial are not necessarily "bare bones." They're not Park Ridge, that's for sure, but neither are they the data center, which needs to be dumped and the people all relocated to Admin on the QS Parkway.

One funny point is that every time a VP comes down to visit admin from NJ, they break out the paint to "freshen up" the walls. This happens multiple times a year. That, too, is wasteful spending, in my estimation.

[drumsncode]

The admin centers off of Memorial are not necessarily "bare bones." They're not Park Ridge, that's for sure, but neither are they the data center, which needs to be dumped and the people all relocated to Admin on the QS Parkway.

One funny point is that every time a VP comes down to visit admin from NJ, they break out the paint to "freshen up" the walls. This happens multiple times a year. That, too, is wasteful spending, in my estimation.

Oh yeah, I forgot about how they'd run around and make you clean up your cubicle when the VP's were coming. What a hoot.

When I said bare bones, I was referring to the data center. The other buildings are a bit nicer. I haven't seen some of the newer stuff. The Res center has a nicer, quieter "feel" to it than the Data Center did in my day.

It's always been funny that computer programmers are placed in cubicles with very little noise isolation, yet computer programming at a world-class level takes a quiet environment and tons of concentration. On Mondays, you'd have to sit there and listen to an hour's worth of sports talk and stuff from the surrounding cubicles. Good luck getting anything substantial done.

When I left and received a private office at my next job, it was incredible, the amount of focus I could achieve without all the noise.

[namellac]

And as long as we have the Oklahoma State Personal Income Tax, I seriously doubt any big dogs would want to pay the extra-price out of their own pockets just for the privilege of relocating their HQ here.

[soonerguru]

And as long as we have the Oklahoma State Personal Income Tax, I seriously doubt any big dogs would want to pay the extra-price out of their own pockets just for the privilege of relocating their HQ here.

Do you work for the State Chamber or something? New Jersey has a state income tax right now! Brilliant.

I hope our state's leadership considers the fact that to grow, Oklahoma will have to become a more attractive place to live, period. The income tax issue is only relevant when you're talking about Texas companies, and frankly, there are many revenue surprises awaiting any "big dog" who moves to Texas.

It's interesting that you gloss over the former Hertz insider who mentions "prestige" as the reason Hertz doesn't move here.

Oklahoma needs to do whatever is possible to raise its level of prestige. Cutting the income tax is not going to do it, as our infrastructure and education funding already lags behind states we're competing with. News flash: we have no ocean here, and are not known for our mountain ranges, and we aren't Hollywood or New York City, so we need to work hard to improve our conditions here. Lagging education and infrastructure will kill us in these competitions.

By cutting the state income tax, we will be funding fewer and fewer services to improve our infrastructure and eduction, a sure bet to ensure Oklahoma never attains the "prestige" we need to attract top-drawer companies.

[Pete]

This could be big news for OKC as you have to think they will move most the jobs from Tulsa to provide synergies with their massive OKC operations:



Dollar Thrifty, Hertz agree to merger deal

Dollar Thrifty Automotive Group's board of directors approved a merger agreement with Hertz Global Holdings in which Hertz will acquire the Tulsa-based company in an all-cash deal for about $2.6 billion, Dollar Thrifty officials said Sunday.


Read more: http://newsok.com/dollar-thrifty-her...#ixzz24mXbYqwI

[Pete]

Dollar Thrifty, Hertz agree to merger deal

Dollar Thrifty Plaza, the headquarters for the Dollar Thrifty Automotive Group Inc.
By JOHN STANCAVAGE World Business Editor
Last Modified: 8/27/2012**12:45 PM


A proposed $2.6 billion merger between Tulsa-based Dollar Thrifty Automotive Group and Hertz Global Holdings would produce $160 million in annual savings and additional sales opportunities for the two companies, officials said Monday morning.

The deal was announced late Sunday. Leaders of both companies held a conference call Monday to offer details.

Locally, interest focused on what kind of impact the deal would have on employment. Dollar Thrifty has about 780 people in the area. Hertz, meanwhile, has 1,700 in Oklahoma City.

The cost savings from the merger would include eliminating duplicate operations, officials said in the conference call. The process should take about two years, they said.

Dollar Thrifty CEO Scott Thompson told his employees in an email that he thinks Hertz will need the majority of the area work force to support the new business.



"We have been assured by Hertz that all of our people will be considered for positions. Our agreement with Hertz includes protection of your current compensation and benefits for a period of time, including severance for those who are not retained. I am sure that Hertz will want the best people in this very competitive industry. We have no information on Hertz's plans for the Tulsa operations, but my guess is that Hertz will benchmark the cost of functions in Tulsa against its Oklahoma City operations in determining where functions are located over the long term," Thompson said.

The merger has the approval of both boards, but is not a done deal. It still must receive federal antitrust approval. Bloomberg News also reported that Dollar Thrifty has 30 days to solicit better offers.

Still, the deal would end a long period of speculation in which various suitors, including Hertz, have been vying to buy Dollar Thrifty.

"The board has determined that the Hertz offer is compelling and in the best interest of our shareholders," Thompson said. "Accordingly, the board has decided to accept the offer in accordance to its fiduciary duty to our shareholders."

The merger has Hertz buying Dollar Thrifty stock at a price of $87.50 per share, Thompson said.

Dollar Thrifty has been in Tulsa since 1958 and has made its headquarters here since 1994. The company is estimated to have a payroll of about $100 million.

The Tulsa Metro Chamber had been among the local observers concerned about a merger with Hertz, particularly in light of that company's large Oklahoma City presence.

But Mike Neal, president and CEO of the chamber, said Sunday night in a statement that his group is looking forward to working with Hertz.

"The chamber welcomes Hertz as a new corporate partner in Tulsa and will aggressively work to ensure the company's integration plans result in positive protections for the Tulsa area work force," Neal said in a statement Sunday. "We will assist Hertz leadership during the transition by reinforcing the retention of the highly trained DTAG work force."

Hertz has been trying to acquire Dollar Thrifty, off and on, for two years. Dollar Thrifty shareholders rejected Hertz's 2010 bid to buy the company for about $1.2 billion. Hertz made another offer last year that it later withdrew, citing market conditions.

Shares of Dollar Thrifty closed Friday at $81, up $1.32. The stock is near its 52-week high of $84.91, set on July 9. Overall, Dollar Thrifty is up 15 percent since the beginning of the year.

Hertz closed at $13.15 on Friday, up 15 cents. The 52-week high for its shares was $16.64 on May 3.

Dollar Thrifty, the fourth-largest U.S. rental car company, employs 6,000 people companywide.

Hertz is the country's second-largest rental car operator. It's based in New Jersey, but its largest operations center - with 1,700 people - is in Oklahoma City. Hertz has 22,000 employees worldwide.

Hertz also announced Sunday that it has reached an agreement to sell its Advantage business to Franchise Services of North America and Macquarie Capital. FSNA is a rental car operator with subsidiaries including, among others, U-Save, Rent-a- Wreck, Practicar and X Press Rent-a-Car. The closing of that divestiture is conditioned upon, among other things, Hertz completing an acquisition of Dollar Thrifty.

Hertz Chairman and Chief Executive Officer Mark P. Frissora said: "We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy - but worthwhile - pursuit. We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies. The transaction provides Hertz instant scale with two new, well- established brands with airport concession infrastructure in the mid-tier value segment. We'll be a stronger global competitive player with a full range of rental options not only in the U.S. but in Europe and other markets given Dollar Thrifty's strong international presence. In addition, we look forward to moving efficiently and swiftly through the regulatory process having reached an agreement to divest our Advantage brand."

The combination provides Hertz with multiple strategic options to address both corporate and leisure business in all three tiers of the car rental market. The combined company would have enhanced leadership positions in key markets around the world, with combined annual earnings of $1.8 billion across approximately 10,000 locations globally.

Read more from this Tulsa World article at http://www.tulsaworld.com/news/artic...1_Dollar174137

[Pete]

Reading the comments in the Tulsa World, most people assume some/all their jobs will be lost to OKC.

[Pete]

Four months isn't a very long time.


****************


Tulsa Employees Guaranteed Jobs for 4 Months After Merger With Hertz
Posted: Aug 27, 2012 9:11 AM PDT
Updated: Aug 27, 2012 2:53 PM PDT
Posted by: Nathan Altadonna


Tulsa, Oklahoma -
Employee's at Dollar Thrifty's Tulsa headquarters are guaranteed jobs for at least four months after merging with Hertz, according to information filed with the Securities and Exchange Commission.

The memo filed Monday with the Commission was issued to Dollar Thrifty managers and featured key points of the merger agreement announced on Sunday. Hertz has agreed to purchase Dollar Thrifty for about $2.3 billion.

The memo states that all Tulsa employees will be retained for four months and the agreement provides severance payments for anyone who is terminated at the end of the four month period.

Dollar Thrifty employees 5,900 employees, including almost 800 at its Tulsa headquarters.

Mike Neal, president and CEO of the Tulsa Metro Chamber, said the Chamber has been monitoring the situation and looks forward to working with Hertz.

"The Chamber welcomes Hertz as a new corporate partner in Tulsa and will aggressively work to ensure the company's integration plans result in positive protections for the Tulsa area workforce," Neal said. "The employees of the rental car industry are a tremendous asset in the travel industry sector, which is closely aligned with the vital aviation and aerospace industry in the Tulsa region."

The announcement Sunday ended two years of competition to buy the company.

Avis Budget Group was also in the mix, pursuing a bid for Dollar Thrifty for more than a year. Avis dropped its bid nearly a year ago citing market conditions. Then, in October of last year, Hertz dropped its bid, too. But Dollar Thrifty didn't trust that the years of attempts were over. In February, it extended its shareholder rights plan known as a "poison pill" - a maneuver designed to deter any unsolicited attempts to take over the company - through May 2013.

Hertz Chairman and CEO Mark P. Frissora said in a statement that the Dollar Thrifty buyout will give it access to two well-known rental car brands - Dollar and Thrifty - as well as make it a more competitive player in Europe and other markets overseas.

"We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy - but worthwhile - pursuit," he said.

Both Hertz and Dollar Thrifty's boards have unanimously approved the deal, which still needs antitrust clearance from the Federal Trade Commission. Hertz said it has stayed in close contact with the FTC to secure clearance and that Dollar Thrifty will fully cooperate with the process.

The Associated Press Contributed to this report.

[venture]

Writing on the wall that the Tulsa offices are done for. I'm not sure OKC will see a huge boost from this outside of more job security from being part of a stable company.

[Bellaboo]

one question, is this merger spelled "t-o-w-e-r"?

No ! Hertz has lots of excess space at the NW HWY Tech Center (Data Center)

I have a close relative that works for Hertz, and all the word around the office is how it would add more work to their department.

[Pete]

Writing on the wall that the Tulsa offices are done for. I'm not sure OKC will see a huge boost from this outside of more job security from being part of a stable company.

Dollar Thrifty has 700 employees.

I'm sure there will be some synergies but no I would bet they will still need at least 80-90% of those employees.

[jn1780]

Dollar Thrifty has 700 employees.

I'm sure there will be some synergies but no I would bet they will still need at least 80-90% of those employees.

They may need those positions, but they may or may not keep them in Tulsa. They may redistribute them throughout the OKC data center and the New Jersey corporate office

[Pete]

I think all the jobs will come here and I bet it will be at least 500 or so.

[Bellaboo]

Dollar Thrifty has 700 employees.

I'm sure there will be some synergies but no I would bet they will still need at least 80-90% of those employees.

I know that for any rental car company that a large percentage are actual field operations. Hertz has 26,186 employees for US operations. OKC operations is a little less than 1,900 not counting contractors and Park Ridge is a little over 700.

This will give an idea of how many are actually in regional offices or actual field rental locations. There will probably be some employees come from Tulsa, but I doubt if it's a great number. Their (Dollar/Thrifty) IT was outsourced to India in 2007.

So, if anything there will be substantial job losses in Tulsa and a small gain in OKC.



Also, in reality, it's no merger.

[Dubya61]

I remember the joke when Mercedes and Chrysler "merged," the saying was when pronouncing the new name: Daimler-Chrysler, the "Chrysler" was silent.

[Pete]

I know that for any rental car company that a large percentage are actual field operations. Hertz has 26,186 employees for US operations. OKC operations is a little less than 1,900 not counting contractors and Park Ridge is a little over 700.

This will give an idea of how many are actually in regional offices or actual field rental locations. There will probably be some employees come from Tulsa, but I doubt if it's a great number. Their (Dollar/Thrifty) IT was outsourced to India in 2007.

So, if anything there will be substantial job losses in Tulsa and a small gain in OKC.

The 700 in Tulsa is exclusive of their field operations.

I stand by my statement that the large majority of those 700 jobs will be moved to OKC.

[Bellaboo]

The 700 in Tulsa is exclusive of their field operations.

I stand by my statement that the large majority of those 700 jobs will be moved to OKC.

Don't count on it, I would expect in the number somewhere around 100 - 125 to OKC, and just a handful to Park Ridge. The layoff rumor has already started at HAC due to the article yesterday.

Keep in mind, since Hertz were bought out by private equity, they have drastically cut the number of positions and salaries.