AKRON—Goodyear is eliminating approximately 850 positions as part of its previously announced transition of its tire manufacturing plant in Danville, Va.
In a recent 8K filing with the Securities and Exchange Commission, Goodyear reported that 850 jobs, including associates and contracted positions, would be eliminated. The tire maker said it had reached an agreement with the United Steelworkers union to reduce the production capacity and production cost per tire in the Americas.
In addition, Goodyear said the total pre-tax charges associated with this will be between $130 million and $140 million, with $80 million to $90 million of that expected to be cash charges "primarily for associate-related and other exit costs."
The move, Goodyear said in the filing, would improve the operating income in the Americas segment by around $15 million in 2025 and $65 million annually thereafter.
In early January, Goodyear announced it was transitioning the Danville facility from focusing on commercial truck tire production to mixing and production of aviation products, calling the move part of its "Goodyear Forward" global transformation plan, designed to make the Akron-based tire maker more profitable.
Goodyear issued a statement about the latest development:
"Goodyear previously announced its plans to refocus its Danville facility on mixing and aviation, strengthening the plant's competitiveness. This plan includes approximately 850 job reductions, including associates and contracted positions. Goodyear is committed to supporting those impacted associates through this transition."
In its filing, Goodyear said it expects to record approximately $100 million of pre-tax charges in the first quarter of 2025 and approximately $40 million of pre-tax charges during the rest of 2025. The tire maker said the majority of the cash outflows associated with this plan will occur by the end of 2025.
Prior to the reorganization, Goodyear employed around 2,000 at the Danville plant, which opened in 1966. It serves as the only Goodyear plant in North America to manufacture aviation tires, supplying those products to major airlines as well as the U.S. military.
The 2-million-square-foot plant sits on a 56-acre site.
In 2022, Goodyear reached a four-year labor agreement with the USW that included wage increases and improved health care.
Goodyear's other TBR (medium truck/bus radial) plant is located in Topeka, Kansas. It is unclear what plant(s) will pick up the TBR capacity that was eliminated at Danville.
According to Tire Business research, the Danville plant is producing 10,000 units per day; the Topeka plant has a capacity of 7,000 units per day.
