AKRON — Goodyear's plans to streamline its operations across the Europe, Middle East and Africa region could save the tire maker as much as $100 million.
Goodyear said Sept. 5 that it would cut as many as 1,200 jobs in the EMEA region as part of its broader set of perspectives aimed at more efficient operations. It also emphasized that it plans to create 500 new roles, "principally in its existing shared services organization in Romania."
Combined, these measures will result in an overall net reduction of 700 salaried positions, according to the Akron-based tire maker.
According to a Sept. 8 SEC filing, the tire maker noted that the job cuts would be made across multiple countries within EMEA.
Goodyear expects the actions to result in significant annual savings. Beginning in 2024, it expects to see savings at around $30 million to $35 million. By 2025, when the actions are fully implemented, job reductions could result in around $50 million to $55 million in 2025.
Overall, Goodyear expects a saving of $5 million in 2023, while "the total expected savings from a 2022 baseline will amount to nearly $100 million."
Goodyear expects to incur total pre-tax charges of $210 million to $230 million associated with the restructuring measures.
Goodyear said it will provide further details about its broader, group-wide plan to improve its global competitiveness and drive growth during the fourth quarter.
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 is the world's no. 3 tire maker with revenue of $17.9 billion, according to Tire Business research.