AKRON—Goodyear plans to phase out tire production at its Gadsden, Ala., passenger and light truck tire plant this year, resulting in 1,300 layoffs at the 70-year-old plant. The phase-out is part of a broader Goodyear plan to trim overhead costs by $100 million to $150 million a year by consolidating operations in Asia and the Americas, Goodyear said Feb. 3, coinciding with its alliance agreement with Sumitomo Rubber Industries Ltd.
The consolidations could result in between 2,500 and 2,800 layoffs globally, Goodyear said.
Goodyear cited the age of the Gadsden plant and inefficiency of manufacturing there for the decision.
Production of passenger and light truck tires will be phased out throughout the year, but the plant will remain open to continue mixing rubber and serve other tire manufacturing facilities, keeping about 200 workers on the job, a company spokesman said.
Preferential hiring will be offered at other Goodyear plants to laid-off employees, the company said.