Goodyear Lays Off More Workers at Alabama Plant
More employees have been laid off at the Goodyear Tire & Rubber Co. manufacturing plant in Gadsden, Ala., as the company continues to restructure its U.S. operations.
A local news media outlet reports 105 employees were laid off on Jan. 31, 2020. Although Goodyear declined to confirm the number of affected employees or tire production levels, the company issued the following statement to Modern Tire Dealer:
“The Goodyear-Gadsden plant continues to rightsize staffing levels, including hourly and salary positions, to accommodate an adjusted production schedule, following recent voluntary buyouts for union associates.”
According to local media reports, 411 people remain employed at the Gadsden plant, and it is producing about 2,000 tires per day.
In December 2019, 740 employees accepted voluntary job layoffs at the plant. According to a Form 8-K/A filing with the Securities and Exchange Commission on Nov. 21, 2019, the voluntary layoffs are part of a plan to curtail production of tires for declining, less profitable segments of the tire market.
Goodyear expects to “substantially complete” its rationalization plan by the first quarter of 2020. The company estimates the total pretax charges associate with the plan to be $85 to $90 million.
Goodyear said in the SEC filing that it expects the plan to restructure U.S. operations will improve its Americas’ segment operating income by approximately $30 million in 2020 and by approximately $40 million annually thereafter.