Goodyear expects $100m savings from EMEA restructure
11 Sep 2023
Total net job cuts 700, as tire maker adds 500 positions in Romania
Akron, Ohio – Goodyear expects to achieve a total of $100 million (€94 million) from its cost-saving measures in Europe, Middle East and Africa (EMEA), the tire maker has announced.
The measures, announced 5 Sept, will see the group cutting 1,200 jobs in the EMEA region, as part of a broader set of actions to “fundamentally streamline” the group’s business.
In an SEC filing 8 Sept, the Akron-based group said the job cuts would be made across multiple countries within EMEA, while also creating 500 new roles “principally in its existing shared services organisation in Romania”.
Combined, these measures will result in an overall net reduction of 700 salaried positions, according to the Akron-based tire maker.
Goodyear expects the actions to result in significant annual savings: beginning in 2024 at around $30-$35 million, "completing" at around $50-$55 million in 2025.
Overall, Goodyear expects a saving of $5 million in 2023, while "the total expected savings from a 2022 baseline will amount of nearly $100 million."
The tire & rubber group, meanwhile, expects to incur total pre-tax charges of $210 to $230 million associated with the restructuring measures.
During the fourth quarter, Goodyear said it will provide further details about its broader, group-wide plan to improve its global competitiveness and drive growth.