Goodyear Takes 4Q Loss, Will Cut 5,000 Jobs

Goodyear Tire & Rubber Co. said Wednesday it lost $330 million in the fourth quarter as sales slumped 7% and that it would cut almost 5,000 jobs.

The largest U.S. tire maker lost $1.37 per share in the quarter, compared with a profit of $52 million, or 23 cents, a year earlier.

The company said it plans to reduce its costs by about $700 million in 2009, including cutting nearly 5,000 jobs — on top of the 4,000 cuts in the second half of last year — and freezing salaries.

Sales fell to $4.1 billion from $5.2 billion a year earlier.

For the full year, Goodyear lost $77 million, or 32 cents a share, compared with earning $602 million, or $3, in 2007. Revenue slipped to $19.5 billion, from $19.6 billion.