Goodyear Tire & Rubber Co. will eliminate about 500 jobs, adding to the wave of layoffs sweeping corporate America as the company cuts costs in response to weak demand and rising inflation.
(Bloomberg) — Goodyear Tire & Rubber Co. will eliminate about 500 jobs, adding to the wave of layoffs sweeping corporate America as the company cuts costs in response to weak demand and rising inflation.
The reductions will target salaried employees, representing about 5% of such positions across the company, according to a statement Friday. The move, expected to be completed during the first half of this year, will results in pretax charges of about $55 million.
“Our fourth-quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe,” Chief Executive Officer Richard Kramer said in the statement. Tire demand fell about 12% during the period in the Europe, Middle East and Africa region, which will drag that unit to an operating loss of about $80 million.
Goodyear shares fell 6.3% at 9:32 a.m. in New York, the biggest intraday decline in almost three months. The company is slated to report full results for the fourth quarter on Feb. 8.
The company said it’s grappling with inflation in areas such as wages and benefits, countering the benefit from a decline in raw material costs.
(Updates with share trading in fourth paragraph)
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