Goodyear Tire & Rubber Co. plans to lay off 450 workers at its plant in Union City, Tenn.
The factory currently employs 3,800 people.
Goodyear cites "economic conditions" and below-average shipment levels as reasons for the decision.
"We're taking steps to control inventory," says a Goodyear spokesman.
The Union City plant can produce 54,000 passenger and light truck tires at full capacity, according to Modern Tire Dealer data.
Goodyear's stock closed at $8.77 a share yesterday.