Goodyear Tire to cut around 1,200 jobs in restructuring drive

BRIDGESTONE

08/09/2023 22:39

Sept 8 (Reuters) - Goodyear Tire & Rubber  GT.O  has
approved a rationalization and workforce reorganization plan in
Europe, the Middle East and Africa that would lead to 1,200 job
cuts, the company said in a regulatory filing on Friday.  
    The decision comes after activist investor Elliott
Investment Management in May criticized Goodyear for
mismanagement and lagging behind rivals Michelin and Bridgestone
 5108.T .
    Elliott, which holds a 10% stake in the tire company, had
also pushed Goodyear for an operational review and sale of its
stores.
    The restructuring will result in "significant" savings from
2024 till 2025 and comes as the company seeks to streamline its
business and improve its cost structure, Goodyear said on
Friday. 
    The Ohio-based firm forecast total pre-tax charges of
between $210 million and $230 million by 2025 due to the
restructuring.    
    The 125-year-old company also said it expects to inform
investors of its broader plan during the fourth quarter.
    Last month, Goodyear swung to a loss of 73 cents per share
for the second quarter, from a profit of 58 cents per share a
year earlier. 
      

 (Reporting by Pratyush Thakur in Bengaluru; Editing by Devika
Syamnath)
 ((pratyush.thakur@thomsonreuters.com;))