The Goodyear Tire & Rubber Company has announced that it will let go of 500 jobs worldwide as part of a “cost savings plan” in response to inflation. The company said a “planned rationalization and workforce reorganization” will result in a 5% reduction in salaried staff or about 500 positions.
“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.”
Due to the impacts of inflation, a weak global replacement tire industry demand and significant increases in energy costs, Goodyear says the company expects its fourth-quarter report to show a loss of about $80 million.