Goodyear Tire and Rubber Company said it will cut about 500 jobs, which is about 5 per cent of its total workforce, in its aim for cost-cutting, the Wall Street Journal.
The company had also warned on Friday that fourth-quarter results fell below expectations as the elevated inflationary environment decapitated demand, according to a statement released on Friday.
In a statement released on Friday, Chief Executive Richard Kramer said that earnings were disappointing “given a significantly weaker industry backdrop, particularly in Europe.” The company is set to report earnings for the fourth quarter on February 8. Its shares fell more than 3.5 per cent in afternoon trade.
Global replacement tire industry demand tumbled 12 per cent in Goodyear’s Europe, Middle East and Asia division during the quarter, the company said.
Softer sales coupled with elevated inflation and “significant increases in energy costs” are expected to push the EMEA (Europe, Middle East, and Africa) business to a fourth-quarter operating loss of USD 80 million.
“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,” Kramer said. (ANI)