Goodyear Tire & Rubber Announces Cost Savings Actions; Q4 Results Fell Short Of Its Expectations

(RTTNews) - The Goodyear Tire & Rubber Company (GT) announced rationalization and workforce reorganization which would result in an approximately 5% reduction in salaried staff globally, or about 500 positions. The company expects to record pre-tax charges associated with these actions of approximately $55 million. The rationalization and reorganization will result in a quarterly run-rate benefit of approximately $15 million beginning in the second quarter. Savings in the first quarter are expected to be $5 million.

The company said Global replacement tire industry demand remained weak in the fourth quarter, led by a 12% decline in EMEA. The company expects its EMEA business unit to report a fourth-quarter segment operating loss of approximately $80 million.

"Our fourth quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe," said Richard Kramer, CEO.