Updated: Goodyear cutting 550 jobs at German tire plant
Move to ‘decrease high-cost capacity and optimise use of other plants in EMEA’
Akron, Ohio – Goodyear is looking to cut 550 jobs in Europe under a plan to reduce production capacity at its plant in Fulda, Germany.
The proposal represents a 50% workforce-reduction at the German plant, Goodyear said in a 31 May filing to the US Securities and Exchange Commission.
The measure, impacting 375 employees and 175 contracted positions, were necessary to 'decrease high-cost capacity and optimise use of other plants” in EMEA.
The proposal would reduce the number of tire SKUs produced in Fulda by around 450, about 200 of which are to be transferred to other EMEA plants, added Goodyear.
The Akron-based tire maker expects to complete the rationalisation measures by the end of 2024, at an estimated cost of between $105 million and $115 million.
The restructuring, it added, is expected to improve EMEA segment annual operating income by about $15 million in 2024, and $30 million thereafter.
In a subsequent statement, issued 2 June, Goodyear emphasised that the restructuring measure would not impact the Fulda brand.
Goodyear, which produces Fulda tires at several plants in EMEA, said the products will continue to be supplied to customers in Germany and other EMEA markets.
The restructuring proposal is subject to consultation with 'relevant' employee representative bodies, the US group also pointed out.