As a part of its rationalising plan, Goodyear Tire & Rubber, the American tyre manufacturing company, has announced to reduce its workforce by 700 employees. The company has also decided to divest approximately 100 retail stores and fleet locations for its Asia-Pacific division.
Earlier this month, the company announced massive layoffs for Europe, the Middle East and Africa,resulting in a reduction of 1,200 positions.
This move was aimed at enhancing the operating income by an about $50 million to $55 million by 2025, as reported by Reuters. The move is also expected to increase profitability in its Australia and New Zealand operations.
The company, which has its headquarters in Ohio, had made this move as part of a bigger restructuring exercise, which will be completed by end of next year. Moreover, the company will soon cease operations at nine warehouse locations, as indicated in a regulatory filing.
The anticipated pre-tax expenses for this initiative are estimated to be at least about $55 million and may even go up to $65 million.
Goodyear, which was established in the 19th century, is known the world over for its innovation in tyre technology, producing a wide range of tyres for various vehicles, including automobiles, trucks and airplanes. The company’s commitment to research and development has led to advancements in tyre performance, safety and sustainability.
Goodyear also operates retail outlets, providing customers with tyre-related services and products.