Goodyear has announced plans to cut 850 jobs at its Danville plant by the end of 2024, marking a significant restructuring move for the tire manufacturer.
The decision, revealed Tuesday, comes as part of an effort to reduce production capacity and lower tire manufacturing costs across its Americas operations.
The company confirmed the job reductions following an agreement made on January 30 with the United Steelworkers union.
The cuts will affect both employees and contractors at the facility, which, as of October 2024, employed around 1,800 people, according to the Danville Register & Bee.
Goodyear did not immediately provide an updated employee count or further details regarding the impact on specific job roles.
The union's local chapter declined to comment, and Goodyear also did not respond to requests for additional clarification at the time.
Despite the job cuts, the Danville plant will continue to focus on specialized production, including the manufacturing of aviation tires and rubber mixing operations.
In a broader move, Goodyear is shifting the majority of its commercial tire production to other plants to focus more on these specific areas, as part of a plan to refocus the Danville facility’s operations and enhance its competitiveness.
Goodyear stated in its filing with the U.S. Securities and Exchange Commission that the restructuring will cost between $130 million and $140 million in 2024 but is expected to generate an improvement in operating income by $15 million this year, with an annual increase of $65 million thereafter.
Danville City Manager Ken Larking expressed concern but also optimism, saying in a statement that the city would collaborate with state and regional partners to help displaced workers access workforce training, job placement assistance, and other support services.
“Danville has proven time and again that we are a resilient community,” Larking said. “While this news is difficult, we remain committed to strengthening our local economy, attracting new investment, and creating opportunities for our workforce.”
Goodyear’s Danville plant has been a significant part of the community since its opening in 1966. For decades, it has served as the city’s largest private employer and has produced more than 100 million truck and aircraft tires during its first 50 years.
As Goodyear navigates this difficult transition, the city and local stakeholders are focused on supporting those impacted by the job cuts and ensuring the long-term sustainability of the region’s workforce.
Headquartered in Akron, Ohio, Goodyear operates 57 manufacturing facilities across 23 countries, employing approximately 72,000 people worldwide.