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  • FILE - This Monday, July 16, 2012, file photo, shows a sign for Harley-Davidson Motorcycles at a Harley-Davidson store in Glendale, Calif. Harley-Davidson is expected to report financial results Tuesday, Oct. 18, 2016. (AP Photo/Grant Hindsley, File)
October 19, 2016 1:50 PM

Harley-Davidson expects to lay off 5% of workforce

Associated Press

MILWAUKEE -- Harley-Davidson Inc. says it expects to lay off about 225 salaried employees by the end of the year to cut costs amid a sluggish U.S. motorcycle market.

The cuts amount to about 5 percent of the company's workforce. The Milwaukee Journal Sentinel reported ( ) that about 70 contractors also will be affected.

The company said it will incur up to $25 million in employee separation and reorganization costs as it cuts production and reduces workers.

Harley-Davison has 1,024 salaried employees at its Milwaukee headquarters and 3,246 salaried employees worldwide. The company has not disclosed where the job cuts will take place.

The company on Tuesday reported an 18.7 percent decline in third-quarter profit on lower sales and said it would cut costs.