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Goodyear Tire to cut 700 jobs, sell retail stores in Asia Pacific

Published 09/22/2023, 05:29 PM
Updated 09/22/2023, 05:32 PM
© Reuters. The Goodyear logo is seen at a tire workshop in Caracas, Venezuela December 10, 2018. REUTERS/Manaure Quintero/File Photo
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(Reuters) - Goodyear Tire & Rubber said on Friday it plans to cut 700 jobs and sell about 100 retail stores and fleet locations, under a rationalization plan for its Asia Pacific segment.

The move is expected to improve the segment's operating income by approximately $50 million to $55 million in 2025, the tire manufacturer said, adding that the plan would also improve profitability in its Australia and New Zealand operations.

Goodyear would also exit nine warehouse locations, a regulatory filing showed.

It follows the company's similar decision announced earlier in the month for Europe, the Middle East and Africa that would lead to 1,200 job cuts.

The Ohio-based company said the approved plan that is part of its broader restructuring effort would be completed by the end of 2024.

© Reuters. The Goodyear logo is seen at a tire workshop in Caracas, Venezuela December 10, 2018. REUTERS/Manaure Quintero/File Photo

The pre-tax charges are estimated between $55 million and $65 million.

Goodyear, in August, swung to a loss of 73 cents per share for the second quarter, from a profit of 58 cents per share a year earlier.

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