Goodyear plans to cut 700 jobs and sell 100 retails stores.
Goodyear to Cut 700 Jobs and Sell 100 Retail Stores
Goodyear Tire & Rubber is embarking on a strategic rationalisation plan for its Asia Pacific segment, which includes slashing 700 jobs and divesting approximately 100 retail stores and fleet locations.
This initiative is set to have a positive impact, bolstering the segment’s operation income by an estimated $50 million to $55 million by 2025.
The tyre manufacturer also anticipates an upswing in profitability within its Australia and New Zealand operations as a result of these changes. In addition to the job cuts and store divestitures, Goodyear will exit nine warehouse locations as part of its streamlining efforts.
This move follows a similar decision made earlier in the month, affecting Europe, the Middle East, and Africa, where 1,200 jobs are slated to be cut. The actions are integral to Goodyear’s broader restructuring strategy, with the entire plan set to conclude by the end of 2024.
The company estimates pre-tax charges in the range of $55 million to $65 million associated with these measures. These strategic adjustments come on the heels of Goodyear’s Q2 financial results, which saw a shift from a profit of 58 cents per share in the previous year to a loss of 73 cents per share in August.
Goodyear continues to adapt to changing market dynamics and aims to position itself for a more sustainable future.