AKRON—Citing an "uncertain" near-term economic outlook and a "significantly weaker" industry backdrop, Goodyear is planning to trim its global salaried workforce by about 5 percent, or 500 jobs, by mid-year.
"Our fourth-quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe," Richard Kramer, chairman, CEO and president, said.
"While our businesses have performed at a high level through the volatility of the past several years, the uncertain near-term macroeconomic outlook and continuing impacts of inflation make these difficult actions necessary to position our business for future success."
Global replacement tire industry demand remained weak in the fourth quarter, Goodyear said, led by a 12-percent decline in the Europe/Middle East/Africa (EMEA) business areas.
When coupled with the impacts of inflation—including significant increases in energy costs—Goodyear said it expects the EMEA business unit to report a fourth-quarter segment operating loss of approximately $80 million, the first such negative result since the second quarter of 2020.