Harley-Davidson, the iconic US motorcycle manufacturer, has announced a slump in profits of more than a third in the first three months of this year.
As a result of the poor performance, the firm will cut between 300 and 400 jobs over the next two years, it said.
Harley's net profits fell to $117.3m (£78.9m) for the period, compared with $187.6m a year earlier.
The company suffered from a drop in sales due to the economic downturn, as well as from one-off tax charges.
Brand strength
The results were roughly in line with analysts' expectations.
Worldwide sales dropped by 12%, while sales in the US fell by 9.7% from a year ago.
The company also said it took a multi-million dollar hit from restructuring costs and a change in Wisconsin tax laws.
The latest job cuts follow on from the 1,100 already announced this year.
"Every reduction in work force we look at very carefully. We need to manage the business to make sure we're well positioned to grow when the economy turns around," said Jim Ziemer, the company's outgoing chief executive.
Indeed, some analysts believe the company's name will see it through the recession.
"Their brand is still resonating and can do well even in some economic softness," said Robin Diedrich at Edward Jones.
Earlier this year, the firm secured a $600m cash injection, including $300m from billionaire investor Warren Buffett.
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