Dive Brief:
- Goodyear Tire & Rubber Co. may shutter a factory next year that employs 1,700 workers in Fayetteville, North Carolina, as part of a domestic restructuring plan, officials said.
- Goodyear, known for its namesake brand as well as Cooper Tires and Dunlop, is in talks with the United Steelworkers union to “close the facility by the end of 2027” following “extensive efforts” to make it more competitive, the Akron, Ohio-based company said Wednesday.
- The move would be a “huge blow” to the plant’s workers and surrounding community, USW District 9 Director Daniel Flippo said in an emailed statement. Goodyear has struggled with sales and profitability over the past year or so, including a net loss of $1.7 billion in 2025.
Dive Insight:
Goodyear has worked to cut costs in recent years, but ongoing demand weakness and raw material disruptions in the Middle East have made conditions more challenging for the world’s largest tire maker.
Net sales were $3.9 billion during the first quarter, a 9% decline from a year ago, driven by weaker demand in Goodyear’s Americas segment and the sale of its polymer chemical business. The company reported a net loss of $249 million for the period.
To better navigate the dynamic environment, Goodyear is looking to “simplify” the organization through continued restructuring and cost actions, CEO Mark Stewart said on an earnings call May 7.
“Just given where volume is, in particular, in the Americas this quarter, our restructuring is going to be focused there,” CFO Christina Zamarro said. She added that this should deliver a “fast payback” due to the high operational costs.
The Fayetteville factory opened in 1969 under the ownership of Kelly-Springfield Tire Co., a subsidiary of Goodyear, CityView NC reported. It has undergone several upgrades and expansions, with enough capacity to produce 65,000 commercial tires a day. The facility was later rebranded Goodyear in 2005.
“This difficult action is necessary to strengthen Goodyear’s ability to compete in today’s marketplace and support the long‑term health of the business,” the company said about its recent talks to close the Fayetteville location. A spokesperson declined to offer details about how Goodyear would conduct layoffs or wind down the factory.
During the fourth quarter, Goodyear approved a plan to lay off 300 workers at the Fayetteville facility. The company also moved last year to cut commercial tire production at its Danville, Virginia, facility; close a production plant in Kariega, South Africa; and reduce its corporate headcount, according to its 2025 annual report. Excluding Fayetteville, the changes affected 1,850 plant workers and 80 sales, manager and office roles.
“While this news is disappointing, Fayetteville has always risen to meet challenges head-on,” Fayetteville Mayor Mitch Colvin said in a statement about the proposed closure. “We are redoubling our efforts to connect our workforce to new opportunities and ensure our residents are prepared for the jobs of tomorrow. Our commitment to building a Next Generation workforce has never been more critical.”
The Goodyear factory is considered an important part of the local manufacturing community and has “contributed significantly” to the region’s economic growth for more than 55 years, according to the Fayetteville Cumberland County Economic Development Corporation.
USW Local 959 is considered one of the region’s largest union chapters and represents all of the Fayetteville plant’s workers, according to its website. It was originally chartered by the United Rubber Workers union in 1972, but it became associated with USW in 1995 when the two unions merged.
“Should it move forward with this plan, our union intends to bargain the effects of management’s decision as we work to alleviate the impact on our members,” Flippo said.
