Goodyear slashes 3,800 jobs; posts $333 mn Q1 loss

NEW YORK: Goodyear Tire & Rubber Company on Wednesday said it cut 3,800 jobs in the first quarter 2009 as part of its measures to bring down costs in the wake of the economic turmoil.

The tire maker has reported a first quarter loss of $333 million on sales of $3.5 billion.

"During the (first) quarter, the company reduced its global work force by 3,800 associates, which will provide further cost savings in subsequent 2009 quarters," the firm said in a statement today.

It also noted that there were new savings to the tune of $145 million in the first three months of this year.

In the year-ago period, the company had a profit of $147 million on revenues of sales worth $4.9 billion.

According to the statement, the latest quarter's sales figure reflect the $766 million impact of a 20 per cent decline in tire unit volume due to significantly lower global industry demand. In addition, an "unfavorable currency translation reduced sales by $484 million".

"... While we are not satisfied with our results, they generally reflect the difficult market conditions," Goodyear's chairman and chief executive officer Robert J Keegan said.

Shares of Goodyear rose more than 10 per cent to $11.54 on the New York Stock Exchange.a