Goodyear plans to reduce workforce at Danville plant by 850 jobs
Goodyear has announced plans to cut 850 jobs at its Danville plant, with most of the reductions expected to be in effect by the end of the year. The company disclosed in a filing with the U.S. Securities and Exchange Commission that an agreement was reached with the United Steelworkers union on Jan. 30 to reduce production capacity and costs in the Americas.
Included in the 850 job cuts are both employees and contractors. The United Steelworkers union represented approximately 1,800 employees at the Danville plant as of October, as reported by the Danville Register & Bee, which first broke the news of the impending job reductions.
The Danville facility will focus on producing aviation tires and mixing operations, where chemicals are combined to produce rubber products. Goodyear’s recent plans involve redirecting the plant’s production towards mixing and aviation projects while relocating commercial tire production to other facilities. The company’s primary objective is to enhance competitiveness at the Danville location and preserve as many jobs as possible.
While Goodyear expects the job cuts to incur costs of $130 million to $140 million this year, it anticipates improved operating income by $15 million in the current year and $65 million annually thereafter. City Manager Ken Larking of Danville stated that the city would collaborate with state and regional partners to assist affected employees through workforce training, job placement services, and additional support facilities.
Despite the challenges presented by the cuts, Larking affirmed the city’s commitment to bolstering its local economy by attracting new investments and fostering opportunities for its workforce. Since its establishment in 1966, the Danville plant has been a significant employer in the area, producing 100 million truck and aircraft tires over five decades.
With headquarters in Akron, Ohio, Goodyear is a globally-renowned tire manufacturer operating in 23 countries with 57 manufacturing facilities and approximately 72,000 employees worldwide. The company’s decision to reduce jobs at the Danville plant underscores ongoing efforts to optimize production and enhance competitiveness in the commercial tire sector.