The Brazilian subsidiary of Bridgestone Firestone has agreed a layoff plan with the local rubber producers union that will see about 10% of the company’s workforce take voluntary redundacy, according to local reports.

The newspaper O Estado de S Paulo reported that the cuts would occur within a week although an extension is available if targeted numbers are not reached in that time. Bridgestone may also look at reducing working hours as the company copes with lower demand.

In December, Bridgestone cut its full-year net profit forecast by 81.8% and the Japanese tyre company also slashed its sales forecast 5%.

The company said in a statement it expected net profit of JPY12bn (US$133m) for the full year, down from earlier estimates of JPY66bn.