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, according to the Wall Street Journal Report.
In a statement posted on Friday, the company also stated that the high inflationary environment had impacted demand, causing fourth-quarter profits to fall short of projections.
Chief Executive Richard Kramer stated in a statement that profits were "given a substantially tougher business context, particularly in Europe, "that they were disappointing.
Goodyear's business drop
On February 8, the corporation is scheduled to release its fourth quarter earnings. Its shares decreased by more than 3.5% in afternoon trading.
The demand for replacement tyres fell 11% globally during the quarter, according to Goodyear's Europe, Middle East, and Asia business.
It is anticipated that weaker sales, increased inflation, and "substantial increases in energy expenses" will cause the EMEA (Europe, Middle East, and Africa) business to have an operating loss of USD 80 million in the fourth quarter.
"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.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)