The Goodyear Tire & Rubber Co. is eliminating more than 700 salaried staff positions in its corporate headquarters and North American Tire.
The actions are being taken as part of an ongoing program to improve the company's fixed-cost structure. Of the total, nearly 500 jobs will be eliminated through layoff, including 350 in Akron, Ohio. The remaining layoffs will be distributed across the corporation's other North American locations. Approximately 200 of the job cuts have been achieved through attrition since the beginning of the fourth quarter of 2002.
Separately, the company announced that 34 hourly positions at the Akron Technical Center will be eliminated.
The actions, for which the company will take a pre-tax charge of about $75 million, are expected to result in annualized savings totaling $80 million, of which $75 million is expected to be achieved during 2003.
Of the positions eliminated, about half are in the company's North American Tire operation, with the remainder coming from Goodyear's corporate function and support groups. The job reductions are expected to be complete by March 31. After these actions, Goodyear will continue to employ more than 3,000 associates in Akron.
"The year 2003 will be one of change and transformation for Goodyear. For Goodyear to restore its earnings growth momentum in this difficult economy, especially in North America, we must improve our cost structure, simplify our business processes and operate more efficiently while continuing to serve our customers," said Robert J. Keegan, president and chief executive officer.
Goodyear manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries.
The actions are being taken as part of an ongoing program to improve the company's fixed-cost structure. Of the total, nearly 500 jobs will be eliminated through layoff, including 350 in Akron, Ohio. The remaining layoffs will be distributed across the corporation's other North American locations. Approximately 200 of the job cuts have been achieved through attrition since the beginning of the fourth quarter of 2002.
Separately, the company announced that 34 hourly positions at the Akron Technical Center will be eliminated.
The actions, for which the company will take a pre-tax charge of about $75 million, are expected to result in annualized savings totaling $80 million, of which $75 million is expected to be achieved during 2003.
Of the positions eliminated, about half are in the company's North American Tire operation, with the remainder coming from Goodyear's corporate function and support groups. The job reductions are expected to be complete by March 31. After these actions, Goodyear will continue to employ more than 3,000 associates in Akron.
"The year 2003 will be one of change and transformation for Goodyear. For Goodyear to restore its earnings growth momentum in this difficult economy, especially in North America, we must improve our cost structure, simplify our business processes and operate more efficiently while continuing to serve our customers," said Robert J. Keegan, president and chief executive officer.
Goodyear manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries.
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