BRUSSELS — Goodyear plans to cut 1,200 jobs throughout its Europe, Middle East and Africa (EMEA) region as part of a previously disclosed restructuring initiative to make the business unit "leaner, more efficient and customer-centric."
The proposed changes include streamlining the EMEA region around two business units — consumer and commercial, Goodyear told European Rubber Journal recently. The staff reduction represents about 15% of the business unit's salaried employment.
The restructure will also involve "simplification" of customer-facing teams with fewer decision-making layers; centralization of corporate functions; and consolidation of R&D activities across EMEA.
The actions, Goodyear noted, remain subject to consultation with stakeholders.
In addition to the job cuts, the tire maker said it would create 500 new roles, predominantly in Goodyear's global business services organization.
The statement follows an earlier announcement by Goodyear Chairman, CEO and President Richard Kramer, signaling "major cost-saving changes" in Europe and globally.
Kramer indicated that EMEA was a particular focus of the cost-savings actions, as the region has suffered operating losses for three consecutive quarters, including a loss of $19 million in the second quarter on 10.4% lower sales.
The operating ratio for fiscal 2022 was just 1.1% — segment operating income of $61 million on $5.65 billion in sales.
Goodyear recently announced a plan to halve capacity at its tire plant in Fulda, Germany. That move, which would involve 550 job losses, is intended to reduce consumer-tire production costs in the region, said Goodyear said, and deliver $30 million in annualized segment operating income benefits by mid-2024.
Goodyear stated in its second quarter earnings report that its goal in the EMEA is to reduce its consumer tire conversion cost by roughly $3 per tire over the coming five years from a 2022 baseline.
