Goodyear is reducing its consumer tyre plant in Union City, Tennessee, from continuous operation to a five-day, three-shift operation on 6 July.
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Early last month, United Steelworkers union members at the plant ratified a local labour agreement that allowed the schedule change, the tyremaker said in a statement. About 550 workers will receive buyout packages as part of the change.
Goodyear said it expected to book after-tax restructuring charges of about $60m, most of it in this current quarter, related to the cash severance payments that will be paid mostly in the third quarter.
Union City can produce about 12m consumer tires a year for both the original equipment and replacement markets and currently employs about 2,300 people.
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