The Goodyear Tire & Rubber Company is planning an approximately 5% reduction in salaried staff globally in 2023, or about 500 positions, the tire manufacturer announced.
“Our fourth quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe,” said Richard J. Kramer, chairman, chief executive officer and president. “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.”
The company cited weak fourth quarter demand in the global replacement tire industry, coupled with the impacts of inflation, including significant increases in energy costs, as its reasoning for the layoffs. Despite declining costs of raw material and certain other input costs, the move also aims to offset inflation in other areas like wages and benefits, Goodyear officials said.