AKRON, Ohio: This week, Goodyear Tire and Rubber Company announced that it would cut 1,200 workers to implement a rationalization and workforce reorganization plan covering Europe, the Middle East, and Africa.
In May, activist investor Elliott Investment Management criticized Goodyear for mismanagement and failing to keep pace with rivals Michelin and Bridgestone.
The criticism by Elliott, which holds a 10 percent stake in the tire company, forced Goodyear to an operational review and sale of its stores, which led to the rationalization plan.
In a statement on September 8, the Ohio-based company said the restructuring would result in “significant” savings from 2024 to 2025, streamline its business, and improve its cost structure.
It also said it expects to inform investors of its broader plan during the fourth quarter.