The Goodyear Tire & Rubber Co. said on Aug. 20 it will close 92 underperforming locations by the end of the year, resulting in about 600 job reductions and $9 million in annual savings.
"Following a rigorous review of operating performance and local market dynamics, these company-owned outlets are not producing acceptable returns," said Scott Vogel, vice president, retail operations, North American Tire. "Taking this action now will allow us to focus our attention on locations with the best long-term potential."It will help position Goodyear to be a stronger competitor."
The company will not disclose the locations slated to close until it speaks with the employees and property owners at each facility, Vogel said. The 92 locations employ approximately 500 full-time workers and 100 part-time employees.
The action will result in after-tax charges of approximately $30 million, of which $15 million will be recorded in the third quarter of 2008.