Goodyear Announces Workforce Reduction: 1,200 Jobs Cut in EMEA Region
Following a double-digit decline in sales there during the second quarter, Goodyear Tire & Rubber Co. revealed on Friday that it has plans to reduce around 1,200 positions in its Europe, Middle East, and Africa (EMEA) division.
According to the firm, the layoffs affect 15% of the paid workforce in EMEA and give insight into the third-largest tire producer in the world’s wide international activities.
A team led by Chairman, CEO, and President Richard Kramer is conducting a strategic and operational assessment for Goodyear, which is commemorating its 125th anniversary.
This summer, under pressure from Elliott Investment Management, a significant investor, the committee was established. Kramer declined to go into detail about the committee’s work during a speech at the Akron Roundtable last month, but noted that Elliott and Goodyear have comparable objectives.
In recent financial reports, the company has emphasized issues in its EMEA region, such as inflationary pressures, supply chain interruptions, and the lack of sufficient trained workers.
In the first half of 2023, Goodyear’s EMEA unit sales decreased by 4.0 million, or 14.1%, to 25.0 million units. The EMEA segment’s net sales decreased 10.4% in the second quarter.
The business stated in its second-quarter report that the EMEA sector was “almost all” responsible for the increases in energy and transportation expenses.
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Job Losses in Fulda and Ongoing Negotiations in Luxembourg
On May 31, the organization made the decision to permanently reduce output at its Fulda, Germany, factory by 50%, resulting in the loss of around 375 associates and 175 contractual employment.
According to the corporation, these steps should increase operational income in the EMEA by $15 million in 2024 and $30 million over the following years. The Fulda changeover is anticipated to be finished by the end of next year, the company stated in financial filings.
A union in Luxembourg, where Goodyear is the eighth-largest employer there, is fighting against the company’s plans to fire 55 people from administrative jobs. Goodyear Luxembourg employs over 3,500 employees.
The OGBL union, which is in favor of a job retention strategy, announced on Friday that management and unions at the Luxembourg factory are going to talk “in the coming days.”
According to the Luxembourg newspaper Virgule, a portion of the Luxembourg factory will be shut down from September 24 to September 30. The corporation decided to shut down the tire factory in Melksham, England, as part of its acquisition of Cooper Tire & Rubber Co. in October of last year.
The corporation operates numerous facilities in its Asia Pacific region and has production and research facilities in several European countries, South Africa, and Turkey. Over 70,000 people work for Goodyear worldwide, and the company runs 57 plants in 23 different nations.
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Source: Akron Beacon Journal
