AKRON, Ohio — According to Goodyear Tire & Rubber Company, a 5% reduction in salaried staff, or roughly 500 positions globally, is underway as the company conducts a workforce reorganization in response to a decline in the tire industry and inflation.
About 90 people who work for Goodyear in Akron will lose their jobs, according to the company.
"Our fourth quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe. While our businesses have performed at a high level through the volatility of the past several years, the uncertain near-term macroeconomic outlook and continuing impacts of inflation make these difficult actions necessary to position our business for future success,” Richard J. Kramer, chairman, chief executive officer and president of Goodyear said in a release.
The company said demand for global tire replacement "remained weak" in its fourth quarter, prompting the cuts.
As one of the largest tire companies in the world, Goodyear employs 72,000 between its 57 facilities in 23 countries, according to the tire company. There are two Innovation Centers, one in Akron and one in Colmar-Berg, Luxembourg. It is unclear if employees at the Akron location will be impacted by the reorganization.
The cuts are expected to happen in the first and second quarters this year, the company said.
Dan Horrigan, mayor of the City of Akron provided News 5 with the following statement regarding the layoffs:
"It’s always difficult to hear about layoffs in our community. My thoughts are with the individuals and their families impacted by the recent announcement from Goodyear. Goodyear continues to be a major employer in Akron, employing more than 2,500 people after these layoffs, and they remain invested in our community. We look forward to their continued long-term growth and success as they combat volatile cost inflation and other challenges. My office is committed to Akron's workers and businesses and connecting our residents with great work opportunities right here in our city."
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