Akron-based Goodyear Tires to cut 500 jobs globally, 90 in Akron
AKRON, Ohio (WOIO) - Goodyear, one of the world’s largest tire companies, announced Friday that “restructuring actions” have been taken over the last week.
The company, which employs 72,000 people worldwide, announced a 5% reduction of salaried staff globally, or about 500 jobs.
A spokesperson confirmed about 90 employees in Akron would be affected.
In a release from the company, they cited this as a cost saving action in response to a “challenging industry environment and cost pressure driven by inflation.”
“Our fourth quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe,” said Richard J. Kramer, chairman, chief executive officer and president. “While our businesses have performed at a high level through the volatility of the past several years, the uncertain near-term macroeconomic outlook and continuing impacts of inflation make these difficult actions necessary to position our business for future success.”
Goodyear said while raw materials and other input costs have gone down, they are attempting to offset inflation in other areas such as wages and benefits.
They expect savings in the first quarter of 2023 to be about $5 million.
The company was recently under investigation after a crash killing eight people and injuring dozens was blamed on their recreational vehicle tires, according to AP.
Goodyear announced previously the closure of its Melksham, United Kingdom manufacturing facility and the exit of TrenTyre retail operations in South Africa.
They said their fourth quarter and 2022 financial results will be announced on Feb. 8, with an investor call to take place the following day.
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