News: Goodyear announces 1,200 job cuts in Middle East and other areas

Strategic HR

Goodyear announces 1,200 job cuts in Middle East and other areas

Besides layoffs, Goodyear also plans to hire 500 new people, mainly for jobs related to their global business services.
Goodyear announces 1,200 job cuts in Middle East and other areas

Goodyear Tire & Rubber Co, headquartered in Akron, is set to reduce its workforce by 1,200 positions within the Europe, Middle East, and Africa (EMEA) region. This move is in alignment with their previously announced restructuring strategy aimed at streamlining operations, enhancing efficiency, and prioritising customer-centric initiatives.

As part of the proposed changes, Goodyear plans to reorganise its EMEA region into two primary business units: consumer and commercial, as reported by European Rubber Journal. The staff reduction corresponds to approximately 15% of the salaried workforce within this business unit.

Additionally, the restructuring initiative will entail the simplification of customer-facing teams, reducing decision-making layers, centralising corporate functions, and consolidating research and development (R&D) efforts throughout the Europe, Middle East, and Africa (EMEA) region.

Goodyear has emphasised that these actions are still subject to consultation with relevant stakeholders.

In addition to layoff, Goodyear announced plans to establish 500 new positions, primarily within Goodyear's global business services organisation.

This statement comes after Goodyear's chairman, president, and CEO, Richard Kramer, had previously revealed plans for "significant cost-saving measures" both in Europe and worldwide.

Kramer highlighted emphasis on cost-saving initiatives in the Europe, Middle East, and Africa (EMEA) region, which has experienced operating losses for three consecutive quarters. In the second quarter alone, the region incurred a $19 million loss, with sales declining by 10.4%.

For the fiscal year 2022, the operating ratio stood at just 1.1%, with segment operating income of $61 million generated from $5.65 billion in sales.

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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