Goodyear to cut 1,200 jobs in Europe, Middle East and Africa
10 September 2023 - 15:05
byPratyush Thakur
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Bengaluru — Goodyear Tyre & Rubber has approved a rationalisation and workforce reorganisation plan in Europe, the Middle East and Africa that will lead to 1,200 job cuts, the company says in a regulatory filing.
The decision comes after activist investor Elliott Investment Management in May criticised Goodyear for mismanagement and lagging behind rivals Michelin and Bridgestone.
Elliott, which holds a 10% stake in the tyre company, had also pushed Goodyear for an operational review and sale of its stores.
The restructuring will result in big savings from 2024-2025 and comes as the company seeks to streamline its business and improve its cost structure, Goodyear said.
The Ohio-based firm forecast total pretax charges of $210m-$230m by 2025 due to the restructuring.
The 125-year-old company said it expects to inform investors of its broader plan during the fourth quarter.
Last month Goodyear swung to a loss of 73c per share for the second quarter, from a profit of 58c per share a year earlier.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Goodyear to cut 1,200 jobs in Europe, Middle East and Africa
Bengaluru — Goodyear Tyre & Rubber has approved a rationalisation and workforce reorganisation plan in Europe, the Middle East and Africa that will lead to 1,200 job cuts, the company says in a regulatory filing.
The decision comes after activist investor Elliott Investment Management in May criticised Goodyear for mismanagement and lagging behind rivals Michelin and Bridgestone.
Elliott, which holds a 10% stake in the tyre company, had also pushed Goodyear for an operational review and sale of its stores.
The restructuring will result in big savings from 2024-2025 and comes as the company seeks to streamline its business and improve its cost structure, Goodyear said.
The Ohio-based firm forecast total pretax charges of $210m-$230m by 2025 due to the restructuring.
The 125-year-old company said it expects to inform investors of its broader plan during the fourth quarter.
Last month Goodyear swung to a loss of 73c per share for the second quarter, from a profit of 58c per share a year earlier.
Reuters
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