Goodyear Tire & Rubber to Cut 700 Jobs to Turn Around Asia Pacific Operations

By Sabela Ojea

Goodyear Tire & Rubber is cutting 700 positions in the Asia Pacific region as it looks to improve boost profitability in Australia and New Zealand.

The tire manufacturing company's operations will no longer have a company-owned approach. It will close nine warehouse locations and sell about 1,000 retail and fleet store locations.

The company will change its operating model to a third-party distribution and retail sales model, according to a Securities and Exchange Commission filing on Friday.

"These actions are expected to improve Asia Pacific's segment operating income by approximately $50 million to $55 million in 2025 and annually thereafter, primarily through a reduction of selling, administrative and general expenses," Goodyear Tire & Rubber said.

The restructuring plan is expected to come with charges of $55 million to $65 million.

Goodyear Tire & Rubber predicts pretax charges of about $20 million in the third quarter, and $5 million in the fourth quarter. The remaining costs will be recorded in 2024.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

September 22, 2023 17:14 ET (21:14 GMT)

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