Goodyear Tire & Rubber Co. has confirmed that its Union City, Tenn., plant will switch from its normal operating schedule to a five-day, three-shift operation, effective July 6.
More than 500 workers at the plant have agreed to buy-outs as part of the switchover.
The decision was made to help "align North American production capacity with weak industry demand," according to Goodyear officials.
The Union City plant can produce about 12 million consumer tires per year, say Goodyear officials. It employs nearly 2,300 associates.
The Akron, Ohio-based tiremaker expects to record after-tax restructuring charges of $60 million associated with the action, primarily in the second quarter, "which relate to cash severance payments that will be paid primarily in the third quarter."
