AKRON, Ohio (WJW) – The Goodyear Tire & Rubber Company has announced that it will let go of 500 jobs worldwide as part of a “cost savings plan” in response to inflation. 

The company said a “planned rationalization and workforce reorganization” will result in a 5% reduction in salaried staff, or about 500 positions.

“Our fourth quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe,” said Richard J. Kramer, chairman, chief executive officer and president. “While our businesses have performed at a high level through the volatility of the past several years, the uncertain near-term macroeconomic outlook and continuing impacts of inflation make these difficult actions necessary to position our business for future success.”

Due to the impacts of inflation, a weak global replacement tire industry demand and significant increases in energy costs, Goodyear says the company expects its fourth-quarter report to show a loss of about $80 million.

The 500 positions are expected to be terminated during the first and second quarters of 2023.

For more on Goodyear’s cost savings plan, click here.