Goodyear to layoff 500 employees worldwide, close U.K. production plant

By MEDICINE HAT NEWS on January 28, 2023.

https://www.medicinehatnews.com@MedicineHatNews

Goodyear says it will layoff 500 salaried employees in its global workforce and close a production plant in the United Kingdom in response to “challenging industry environment and cost pressure driven by inflation.”

The Friday announcement comes as the global tire manufacturer prepares to release year-end financial reports on Feb. 9.

The planned workforce reduction equals about 5 per cent of the salaried, not production, staff.

“Our fourth-quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe,” said Richard J. Kramer, CEO of Goodyear Tire and Rubber.

“The uncertain near-term macroeconomic outlook and continuing impacts of inflation make these difficult actions necessary.”

The company says replacement tire sales fell in late 2022. Coupled with “significant” increased to energy costs, the company expects an $80-million loss in the quarter.

Goodyear previously announced it will close a manufacturing facility in Melksham, U.K., and exit its TrenTyre retail operations in South Africa to reduce costs.

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