Avis Budget Group Inc. is planning on to restructure the operations and management of the Budget Truck Rental that will result in the closing of its headquarters and some contact center facilities.
The restructuring plan calls for the closing of Budget Truck Rental’s headquarters at 1560 Broadway in Denver in early 2007. Budget leases approximately 43,000 square feet on the 16th and 17th floor of the 580,000-square-foot building. The lease is set to expire next year.
Budget Truck Rental’s senior management and certain back-office functions including accounting, finance, marketing, fleet management and sales will be consolidated within Avis Budget Group facilities in Parsippany, NJ, Virginia Beach and Tulsa.
Out of approximately 290 total positions related to Budget’s Denver truck rental operations, approximately 50 are being eliminated, and approximately 90 employees have been offered relocation.
“After a comprehensive evaluation of the rental truck industry and Budget Truck Rental operations, we have renewed our commitment to this business and have concluded that we can drive cost savings by more closely aligning our truck and car rental management and operations,” said Ronald L. Nelson, chairman and CEO of Avis.
