AKRON (Oct. 10, 2001)—Goodyear will layoff approximately 1,400 hourly and salaried workers this month and move from continuous operations to five- or six-day work schedules at five of its U.S. tire plants.
The plants affected are in Danville, Va., Fayetteville, N.C., Gadsden, Ala., Huntsville, Ala., and Tyler, Tex., according to a company spokesman, who said the layoffs represent about 5 percent of Goodyear's U.S. workforce. He said the job cutbacks and adjustments in output will be carried out “as quickly as possible,” but the timetable will vary from plant to plant depending on the products they turn out.
In news releases sent to local newspapers within the geographic areas affected, Goodyear said it will lay off as many as 275 workers in Danville, 475 workers in Fayetteville, 225 in Gadsden, 250 in Huntsville, and 175 in Tyler.
The company's anticipated layoffs follow earlier job cuts this year totaling 8,000. Most of those cuts occurred in Europe, Asia and Latin America.
More recently, Goodyear said it expected third-quarter net income to drop to 5 cents a diluted share vs. 11 cents last year. It also announced plans to reduce its quarterly dividend by 60 percent in the face of what Chairman and CEO Sam G. Gibara described as weak markets further disrupted by the Sept. 11 terrorist attacks on the U.S.