National car rental firm says it will leave Canada
NEW YORK — A national car rental company has announced it will lay off more than a third of its staff as it struggles to stay afloat amid a wave of bankruptcies and lawsuits related to a national car lease system.
The decision by Global Car Rental Services (GCRS), which operates more than 5,000 vehicles in Canada, comes as Canadian taxpayers continue to shell out millions of dollars for its leasing services.GCS said it would reduce the number of its full-time staff by more than two-thirds over the next six months as it prepares to exit the business.
The company said the move will save about $10 million a year.GCRS said it will offer an hourly car rental service that will start to become more widely available to car rental providers in 2017.
The company also said it plans to start charging car rental companies more for leases.
It also plans to introduce new vehicle rental models, which will allow customers to choose between car rentals that require no deposit or a monthly payment, and those that are free.
Greenspan said the company is continuing to work to reduce costs, but said the new move will hurt its bottom line.
“The fact that it is a full-on layoff at this point, it’s a pretty significant blow for us,” he said.
GCRS says it’s been forced to cut jobs by more then 60 percent over the past five years due to bankruptcies, lawsuits and the bankruptcy of several other companies, including the National Automobile Dealers Association.
It’s not clear what the full scope of the layoff will mean for other employees, who work on the company’s fleets, or for the company as a whole.