Goodyear Implements Cost-Cutting Strategy, Shuts Down Plant in Malaysia

In a recent development, Goodyear Tyre & Rubber Co. has confirmed the cessation of operations at its Malaysia plant by June 30. The closure, impacting approximately 550 employees in the Shah Alam district of Malaysia’s Selangor state, is part of Goodyear's broader initiative to enhance its operational efficiency and global competitiveness.

The decision, outlined in a statement released on Friday, comes as a result of a comprehensive strategic review conducted by the company. Goodyear aims to achieve substantial cost reductions, with a targeted goal of cutting costs by $1 billion by 2025. The closure is a strategic step to ensure sustained competitiveness and secure the company's position as an industry leader.

Mark Stewart, who recently assumed the role of President and CEO, has been instrumental in steering Goodyear through this transformative phase, succeeding Richard Kramer, who announced his retirement in November. The company anticipates completing the closure process in Malaysia by the end of 2024.

Goodyear remains committed to its workforce, expressing that these decisions are not taken lightly, and the company is dedicated to treating its associates with care and respect. Despite the plant closure, Goodyear reassures its commitment to serving the Malaysian market by leveraging its industry-leading products and solutions from other manufacturing sites within Goodyear’s global footprint.

In alignment with its commitment to human rights and fair labor practices, Goodyear has been actively working with the Malaysian government to support affected workers in finding new job opportunities and providing necessary training. The company's Global Human Rights Policy, updated in March 2023, underscores key principles such as the prohibition of forced labor and child labor, commitment to safe working conditions, recognition of workers' rights to collectively bargain, and the establishment of a 24/7 hotline for concerns raised by workers and associates.

Goodyear, with a history dating back to the launch of its Malaysian tyre-making operations in 1961, acknowledges the challenges posed by the closure of the Shah Alam plant, opened in 1972. The company expresses gratitude for the support received from customers, partners, and stakeholders as it navigates through this transformative phase, reaffirming its dedication to sustainable growth and industry leadership.