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In a bid to enhance efficiency and cut costs, Goodyear Tire & Rubber is set to reduce its workforce by 1,200 employees in Europe, the Middle East, and Africa.
Elliott Investment Management’s Critique
The decision comes after activist investor Elliott Investment Management, holding a 10% stake in the company, criticized Goodyear for mismanagement and falling behind competitors like Michelin and Bridgestone.
Streamlining for Savings At Goodyear Tire
Goodyear aims to achieve “significant” savings from 2024 to 2025 through this restructuring effort. The company seeks to streamline its operations and improve its overall cost structure.
Financial Impact
As a result of the restructuring, Goodyear anticipates incurring total pre-tax charges ranging from $210 million to $230 million by 2025.
Future Plans
The 125-year-old company also plans to share further details of its broader strategy during the fourth quarter. This announcement follows Goodyear’s recent financial performance, with the company reporting a loss of 73 cents per share for the second quarter, compared to a profit of 58 cents per share in the previous year.
Disclaimer: This article serves solely for informational purposes and should not be construed as financial advice. Thus, we strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
