The Goodyear Tire & Rubber Company
07/21/2026 | Press release | Distributed by Public on 07/21/2026 14:29
Reorganization (Form 8-K)
Item 2.05 Costs Associated with Exit or Disposal Activities.
On July 16, 2026, The Goodyear Tire & Rubber Company (the "Company") reached an agreement with the United Steelworkers and approved a plan to permanently close its Fayetteville, North Carolina manufacturing facility to reduce the Company's production capacity and production cost per tire in Americas. The plan includes approximately 1,750 job reductions. The Company expects to substantially complete this rationalization plan by the end of 2027 and estimates the total pre-tax charges associated with this action to be between $535 million and $565 million, of which $190 million to $210 million are expected to be cash charges primarily for associate-related and other exit costs, and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation and other asset-related charges ($290 million to $310 million) and pension special termination benefits ($40 million to $50 million). The Company expects to record approximately $205 million to $225 million of pre-tax charges in the third quarter of 2026 and approximately $65 million to $85 million of pre-tax charges during the remainder of 2026. The majority of the cash outflows associated with this plan will occur by the end of 2027. These actions are expected to improve Americas segment operating income by approximately $90 million in 2027 and by approximately $270 million annually in 2028 and thereafter.
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