Goodyear cuts 850 jobs in the US

The company Goodyear will cut 850 jobs at its Danville, Virginia, US plant as part of a move to shift truck tire production to other sites, according to a company filing with the US Securities and Exchange Commission.

Tire maker noted that it has reached an agreement with the union regarding the reduction of capacity and the cost of producing one tire in the US, and the measures taken will increase the operating profit of the US division of the company by $15 million in 2025 and by $65 million in subsequent years. The costs associated with the transfer of production will be between $130 million and $140 million.

As part of the Goodyear Forward restructuring plan, the company is currently actively working to reduce costs and sell assets. Thus, Yokohama has recently acquired Goodyear's OTR tire business, and the rights to the Dunlop brand will be sold to Sumitomo.

As previously reported, the Danville plant, which opened in 1966, will continue to produce rubber compounds, and the facility is also the only Goodyear site in North America that produces aircraft tires, which are supplied to major airlines and the US Air Force. It is not yet known where truck tire production will be relocated, and the country also produces tires of this type at a plant located in Topeka, Kansas.

According to Tire Business, the plants in Virginia and Kansas are capable of producing 10,000 and 7,000 truck tires per day, respectively.

Photo: wbtmdanville.com