AKRON (Sept. 10, 2004) — Goodyear plans to cut about 340 positions in its non-tire businesses within the next 14 months in a cost-cutting move.
The Akron-based tire maker said it will cut about 240 positions from its Engineered Products division plus another 100 in the Chemical unit. The company said the Engineered Products reduction will result in a charge of $23.5 million to $27.5 million. Goodyear also will reverse between $4 million and $8 million of reserves related to previous programs in the business unit. The reduction in the Chemical business will result in a charge of $5.5 million to $6 million.
The Engineered Products reductions will be complete by the third quarter of 2005, and the reductions in Chemical will be complete by the end of the year.
Goodyear also said it plans to make future cash expenditures of $4.5 million and $6.5 million in Engineered Products in connection with this cost-cutting action. The company also will spend $2 million to $2.5 million in the Chemical unit in the future.