Goodyear Cuts 150 Jobs Across Europe
Goodyear Tire & Rubber Company will cut more than 150 positions in its European business unit in order to create annual savings in selling, administrative and general expenses of over $10 million.
“Concurrent with efforts to grow our top line through innovative new products and marketing, we are intensely focused on reducing the company’s global cost structure,” said Goodyear chairman and CEO Robert J. Keegan. “Our objective is to achieve cost reductions totalling between $750 million and $1 billion by 2008, including $150 million to $200 million in SAG (sales administration and general) costs.”
While positive about the expected savings of at least $10 million Deutsche Bank analysts reported: “It is relatively small in the context of [Goodyear’s] revenue base, and other factors that are affecting profitability.”
The restructuring programme is said to involve cost reduction actions in selling, administrative and logistic areas that are expected to result in total restructuring charges of approximately $20 million ($15 million after tax), all cash-related, the company said in an official statement.