Goodyear Tyre & Rubber, an American tyre manufacturing company, has announced a 700-person workforce reduction as part of its rationalisation plan. In addition, the company has decided to sell approximately 100 retail stores and fleet locations in its Asia-Pacific division.
The company announced massive layoffs for Europe, the Middle East, and Africa earlier this month, resulting in a reduction of 1,200 positions.
According to Reuters, the goal of this move was to increase operating income by $50 million to $55 million by 2025. The move is also expected to boost profitability in the company’s operations in Australia and New Zealand.
The company, headquartered in Ohio, made this move as part of a larger restructuring effort that will be completed by the end of next year. Furthermore, according to a regulatory filing, the company will soon cease operations at nine warehouse locations.
Pre-tax expenses for this initiative are expected to be at least $55 million, and may even exceed $65 million.
Goodyear, which was founded in the nineteenth century, is known throughout the world for its tyre technology innovation, producing a wide range of tyres for various vehicles such as automobiles, trucks, and aeroplanes. The company’s commitment to R&D has resulted in advancements in tyre performance, safety, and sustainability.
Goodyear also has retail locations where customers can get tyre-related services and products.