Goodyear restructures EMEA: 1200 jobs cut, 500 created

Goodyear is significantly restructuring its Europe, Middle East and Africa (EMEA) operations in measures that will result in 1200 job cuts across the salaried workforce, the creation of 500 new positions and therefore a net job reduction of 15%. Tyres & Accessories understands that the “business transformation programme” centres on Goodyear EMEA’s salaried workforce. Furthermore, it does not impact the company’s manufacturing workforce, which has been addressed separately.

The specific actions taking place include streamlining operations into consumer EMEA and commercial EMEA business units. With internal consultation on the reforms having only begun today (6 September), it is not yet clear exactly what will be included in each respective unit.

However, it is likely the transformative measures will follow a similar pattern to the centralisation measures taking place within Goodyear EMEA’s R&D function. Specifically, Goodyear will consolidate all its research and development operation in Luxembourg.

Goodyear representatives explained that the restructuring actions are taking place in order to “become a more lean, efficient and customer-centric organization”, adding:

“The proposed changes include streamlining the EMEA region around two product business units (Consumer EMEA and Commercial EMEA); simplification of customer-facing teams with fewer decision-making layers; centralization of corporate functions; and consolidation of R&D activities across EMEA.”

Chris Delaney, president of Goodyear’s Europe, Middle East, and Africa business commented: “Although restructuring is a hard choice, it is necessary as we look to the future. These actions will not only improve our competitive cost position, but also make it easier to do business with Goodyear in the region and enable future growth.”