Goodyear to cut 850 jobs in Danville

About 850 jobs will be cut by the end of the year at Goodyear’s tire manufacturing facility in Danville, according to a document the tiremaker posted Tuesday.

The Goodyear Tire & Rubber Co., which is headquartered in Ohio, reached an agreement on Jan. 30 with the United Steelworkers union “to reduce the company’s production capacity and production cost per tire in Americas,” states a filing with the U.S. Securities and Exchange Commission.

The job reductions will include associates and contracted positions. The Danville facility will continue to produce aviation tires and conduct mixing operations, according to the filing, but medium truck tire production will end at the Danville plant, which opened in 1966.

United Steelworkers Local 831 represents about 1,850 Goodyear employees in Danville, according to its website. Requests for comment from the union and Goodyear were not immediately returned.

Goodyear’s agreement with USW to reduce production capacity and cost per tire will cost the company between $130 million and $140 million, the SEC document says, with $80 million to $90 million expected to be cash charges for layoff-related costs. The layoffs are expected to improve the Americas segment of the Ohio-based business’s operating income by approximately $15 million in 2025 and $65 million a year afterwards, the filing says.

Ken Larking, Danville’s city manager, said in a statement that the city’s staff will work with state and regional partners to provide services to displaced employees.

“Danville has proven time and again that we are a resilient community,” Larking stated. “While this news is difficult, we remain committed to strengthening our local economy, attracting new investment and creating opportunities for our workforce.”

In November 2023, Goodyear unveiled its Goodyear Forward plan, an initiative “to optimize its portfolio, deliver significant margin expansion and reduce leverage to drive sustainable and substantial shareholder value creation.” The company forecasted that plan could result in top line and cost reduction actions totaling $1.3 billion by the end of 2025.

Goodyear announced plans to sell its Dunlop brand to Japan’s Sumitomo Rubber Industries for about $701 million last month.

The company has 55 manufacturing facilities in 22 countries and employs 71,000 full-time and temporary workers, according to its 2023 annual report.