Car rental company Lihue, based in Michigan, has cut its staff by 200 people in a bid to reduce its debt, the company said Tuesday.
The cuts will begin immediately, the firm said.
Lihua’s automotive services division, which includes leasing and car rental services, employs about 500 people.
The company has been struggling to balance its debt and cash flow as it struggles to compete with rivals such as Hertz and Equinox.
Lidl said in a statement Tuesday that it has been cutting staff and closing other businesses in an effort to “immediately return to profitability and provide for the long-term health of our business.”
“We are very grateful to our customers for their continued support,” the company added.
Lihuue’s stock fell more than 7% to $9.80 in early trading.”
Lidl will be taking a number of significant steps to strengthen our core businesses and continue to focus on our core values of customer service, reliability and customer care.”
Lihuue’s stock fell more than 7% to $9.80 in early trading.