Goodyear labor cuts made globally

NEW YORK (Feb. 15)—Goodyear will cut 7,200 jobs this year from its global work force in a move that company management expects to yield $150 million in bottom line benefits this year and $250 million annually thereafter. The bulk of the tire division cuts will take place in Europe, where Goodyear expects to trim 1,600 jobs in western Europe and 2,000 in its Eastern Europe/Africa/Middle East region. There will about 500 cuts in North America, 600 in Asia and 500 globally in the engineered products business. The job will be a combination of early retirement and other incentive-based programs. The company wouldn´t rule out plant closings being part of the total. Taken together with 3,500 job cuts effected last year, Goodyear by year-end 2001 will have reduced its payroll by more than 10 percent, Goodyear Chairman Sam Gibara told analysts. The newly announced cuts do not include 500 jobs being eliminated in Australia at Goodyear´s joint venture there, South Pacific Tyres, Gibara said.