Avis Loses $1 Billion, Fires 700 Employees

by Justin Berkowitz

October 28th, 2008 6:50 AM

Reuters is reporting that Avis is getting hit by the slowing economy. Perhaps even more than retailers, vacation-related businesses really take a beating when the economy gets rough, and just like hotels are getting slammed, so too are car rental companies. They say that the “workforce reductions” should save $50 million/year. Against a $1 billion loss, that sounds like a worthwhile way to ruin 700 lives. (Avis CEO Ronald Nelson only made $2.15 million last year before taxes). So much for trying harder.

Warning: Video contains profanity

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4 of 5 comments

Nick on Oct 28, 2008
Anyone know what’s the going daily rate for a full size SUV Answer: Please bring the tank back full.

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Shaker on Oct 28, 2008

"Against a $1 billion loss, that sounds like a worthwhile way to ruin 700 lives" Couldn't have said it better myself.

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AJ on Oct 28, 2008
Against a $1 billion loss, that sounds like a worthwhile way to ruin 700 lives. A company has to start somewhere. I'm sure that will include a lot of other related cutbacks, such as locations closing, fleets cut, etc. I know it's tough, but I've been through it myself three times so far. Life goes on. (Avis CEO Ronald Nelson only made $2.15 million last year before taxes). So much for trying harder. I'm glad that you mentioned that before taxes. The government certainly benefits as well to his big income. Where is the hate for them? Hum?

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Blautens on Oct 28, 2008
SupaMan : I’ve checked the Avis website for any deals on SUVs and found none. Anyone know what’s the going daily rate for a full size SUV (Yuktahburbans or Expicursions welcome). $28 a day out of BWI last month...through Budget (I usually use Enterprise, but the price - via Hotwire - was too good to pass up). Notable, because I imagine they're paying major airport taxes there (I didn't see it on my bill, though). Locally, my Enterprise (not at an airport) just charged me $34 for a Suburban. Almost exactly last year at this time that was $40. (I own a GM car - so I have to rent a lot of cars locally...)

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