By Sabela Ojea
Goodyear Tire & Rubber is cutting 850 positions at its tire manufacturing facility in Danville, Va. as part of a wider plan to reduce production capacity and costs per tire in the Americas.
The Akron, Ohio-based tire-maker on Tuesday said that the reduction in the workforce, which affects associates and contracted workers, follows an agreement with the United Steelworkers union.
The Danville plant will continue to produce aviation tires and conduct mixing operations, the company said in a Securities and Exchange Commission filing.
Overall, Goodyear Tire & Rubber expects the cuts to be substantially completed by the end of the year. It also forecasts total pre-tax costs associated with the plan in the range of $130 million to $140 million.
The company expects to record about $100 million of these charges in the first quarter, and $40 million throughout the reminder of 2025.
Goodyear Tire & Rubber is expected to post fourth-quarter earnings on Thursday. In the latest quarter, the company posted a 6.2% drop in sales to $4.82 billion after seeing its tire unit volumes down around 8%, and raised its expectations for cost savings under a turnaround plan.
The company then said it was targeting gross run-rate gains from its Goodyear Forward program, announced in November 2023, of $1.5 billion by the end of 2025. The company's original target was $1.3 billion in run-rate benefits.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
February 04, 2025 17:08 ET (22:08 GMT)
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