The current economic downturn is most notably affecting the world’s automakers, but the companies supplying the auto industry are feeling the squeeze, too. Tire maker Goodyear is one such company, with fewer orders from the auto industry forcing the Ohio-based company to shed an additional 5,000 jobs.
According to Automotive News, Goodyear is planning to cut its global staff by 5,000 employees in 2009, accounting for about 6.7 percent of the company’s worldwide work force. The cuts come amid slumping sales and dismal fourth quarter results.
During the fourth quarter of 2008, Goodyear posted a net loss of $330 – a far cry from the company’s $52 million profit during the same period a year earlier.
However, Goodyear is no stranger to job cuts. The U.S.’ largest tire maker has been restructuring its operations over the last three years, with 4,000 Goodyear employees losing their jobs in the second half of 2008 alone. Even more job cuts could be on the way as several analysts predict Goodyear will need to shutter two to three more plants. Goodyear plans to further reduce its production capacity by 15 million units, leaving the tire maker with the capacity to make just 25 million tires per year.
About 20 percent of Goodyear’s business is with OEM manufacturers, while the rest is comprised of replacement tires.
