From the release: “Cost reduction actions driving an annual, run-rate benefit of $1 billion by the end of 2025. The Company has initiated a specific and actionable cost reduction plan encompassing footprint actions and plant optimization; purchasing; SAG; supply chain; and R&D. With many unique workstreams, Goodyear has a clear line-of-sight to 100% of the cost savings. .”
While it doesn’t say how many of us will be laid off. 2024 will not be kind, need to get our resumes updated ASAP.
From the above you can see a few key things that will unfold:
- “Footprint and plant optimization” = We are closing one to two plants. Not sure which ones but if we are selling Dunlop, Off Road, etc. I would suspect those plants first.
- Purchasing = We are cutting budgets as much as possible.
- SAG = Major headcount reduction. I would believe they need something of 15% reduction
- R&D = Shutting down LUX? But there will be a major reduction here if they are calling it out specifically
The biggest flash though is "driving an annual, run-rate benefit of $1 billion by the end of 2025. “ That is a MAJOR tell it will all happen 2024. And if it is $1B it will be deep and painful. To put it into perspective. We have a market cap of $3.3B. We sell $17B globally. This is going to hurt.