Rental car company Hertz Global Holdings Inc. has been hit by the economic crisis. The company plans to eliminate 4000 positions as a cost cutting endeavor.

The situation has worsened due to deteriorating demand and vehicle values. The car rental industry faces  an uphill task as airlines have reduced flights, consumers and businesses have cut back on travel expenditure.

The company work force amounts 29,350 which is spread out in 8100 locations across 144 countries. The lay -offs would be applicable in all regions. This would help the company in saving $150 - $170 million during the current year.

"Volume, pricing and residual values continued to decline during the most recently completed quarter, and we cannot predict when our markets will improve," said Chairman and Chief Executive Mark P. Frissora in a statement.

The Chairman also gave an assurance that the company would “continue to utilize Lean Sigma techniques to reengineer important business processes to drive further efficiency”. He said that the company and the officials were dedicated towards providing  global airport and off-airport car rental and equipment rentals.

However, the Share market had something else to report, the shares of Hertz fell 12 cents, or 2.2 percent, to close at $5.27 on Friday.