Rental car company Hertz Global Holdings Inc. said Friday it will slash its work force by an additional 4,000 jobs worldwide as it further cuts costs to contend with deteriorating demand and vehicle values.

The company expects to save $150 million to $170 million this year and take a related fourth-quarter charge of $20 million to $25 million.

This is only the latest round of job cuts for the rental car company, which eliminated 1,400 employees this autumn.

The new reductions will bring staffing to 32 per cent below its levels in August 2006, Hertz said. As per latest figures, the company currently has about 29,350 workers in total, who operate about 8,100 locations in 144 countries.

The cuts are in the car and equipment rental businesses as well as in corporate and support areas in all regions focused on positions that do not have direct contact with customers, Hertz said in a statement.

"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 CEO Mark P Frissora in a statement. He said Hertz is still committed to its global airport and off-airport car rental and equipment rental businesses and will add the "necessary resources" when operating conditions get better.

Third-quarter profit plunged 89 per cent to $17.7 million, or 5 cents a share, from $162.7 million, or 50 cents, a year earlier, and sales declined 1.2 per cent to $2.42 billion, Hertz said 5 November. The company said then that it wouldn't provide earnings forecasts until ''the economy and market conditions stabilize.''

Hertz had earlier forecast full-year profit, excluding some items, of as much as $375 million, or $1.15 a share, and sales of $8.8 billion at most. Analysts surveyed now expect 2008 earnings of 63 cents per share on $8.81 billion in revenue.

Hertz rivals Avis Budget Group Inc. and Dollar Thrifty Automotive also are struggling. Avis has announced a management salary freeze and cut more than 2,200 jobs as part of a drive to reduce annual costs. In October, Dollar Thrifty said it had cut its work force by 6 per cent, or 400 jobs.

Hertz's finances have been considered more stable than its rivals, due to the company's large equipment rental division, which accounts for roughly half its earnings and provides it with more cash flow than pure rental car companies.

Shares of Hertz fell 12 cents, or 2.2 per cent, to close at $5.27 on Friday. During the past 52 weeks, the stock has fallen from a high of $15.32 last February to bottom at $1.55 in November.