Goodyear Tire & Rubber Co. has accepted buyout applications from 740 employees at its manufacturing plant in Gadsden, Ala.
The voluntary job layoffs are part of Goodyear’s plan to curtail production of tires for declining, less profitable segments of the tire market, according to a Form 8-K/A filing with the Securities and Exchange Commission on Nov. 21, 2019.
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.
Goodyear’s Gadsden plant began operations in 1929.
