Goodyear to cut 700 jobs in Asia Pacific

Akron, Ohio – Goodyear Tire & Rubber Co. is launching a rationalisation programme within its Asia Pacific region as part of a move to improve profitability in Australia and New Zealand.

In an SEC filing 19 Sept, the US group said the plan would lead to 700 job cuts and exit of nine warehouse locations, as well as the sale or exist of 100 retail and fleet stores.

The proposed plan, it added, will change the group’s operating model in the region to a third-party distribution and retail sales model instead of a company-owned approach.

The decision remains subject to consultation with employee representatives.

The rationalisation move is a part of a broader set of actions the group is taking to “fundamentally streamline” its business, improve its competitive position and drive growth.

Goodyear said it expected to substantially complete the plan by the end of 2024 and estimates total pre-tax charges of $55 million (€51 million) and $65 million associated with the move.

The measures are expected to improve the segment’s operating income by $50-$55 million in 2025 and annually thereafter, primarily through a reduction of selling, administrative and general expenses.

The announcement follows Goodyear’s initiation of a major restructuring move in Europe earlier this month. (ERJ report)

The group is set to disclose further details about its broader group-wide restructuring plan in the final quarter of the year.