Goodyear struggles with tariff impacts, sees layoffs continuing

  • Goodyear announced that its financial results for the second quarter of 2025 didn’t meet its expectations, citing tariffs and inflation as factors.
  • The Akron-based company tentatively plans to make changes in its supply chain to reduce tariff impacts and is encouraging trade partners to participate in the United-States-Mexico-Canada Agreement.
  • Goodyear is continuing with planned layoffs. The company laid off about 80 employees in its Americas and Corporate divisions months ago, and most of those positions were based in Akron.

The Goodyear Tire & Rubber Co. has told federal regulators it expects to initiate at least 1,800 layoffs in 2025 as it wrestles with rising tariffs and the effects of inflation.

About 750 of these cuts were initiated in the first half of the year, filings with the Securities and Exchange Commission show — including 80 or fewer positions based at its Akron headquarters, a Goodyear spokesperson confirmed Aug. 11. The layoffs also include roughly 900 employed and contracted jobs in South Africa.

The company said during an Aug. 8 earnings call that its second-quarter results did not meet expectations. Goodyear reported an adjusted net loss of $48 million for the quarter ending June 30, down year-over-year from $48 million in adjusted net income for the second quarter of 2024.

The company’s reported loss per share of 17 cents for the second quarter of 2025 was 54 cents below the Zacks Consensus Estimate of a 37-cent-per-share gain.

The stock has taken a hit since the quarterly earnings were announced Aug. 7 after the close of trading. At the close of market Aug. 12, its value had dropped $2.01 or 19.5% over the last five days to $8.25.

Tariffs, inflation impacting Goodyear finances

Goodyear’s annualized tariff costs equate to about $350 million, Christina Zamarro, the company’s executive vice president and chief financial officer, said on an earnings call on Aug. 8.

That’s $50 million above the estimated $300 million in annualized tariff costs that Goodyear reported in May, when it announced results for the first quarter of 2025.