The closure of the more than 2.2 million-square-foot plant would leave more than 2,000 people without jobs.
The closure would end more than 55 years of manufacturing at the facility. For decades, the plant has provided generations of stable employment in the area and played a key role in the region's economic strength.
The company cited the need to strengthen its ability to compete in the current marketplace as the reason behind the decision.
Goodyear's Senior Director of Global Manufacturing & Supply Chain Communications, Kylie Ulanski, told ABC11 that "The tire industry is changing fast, and Goodyear must change with it. As the only remaining U.S.-based tire manufacturer, we are committed to U.S. manufacturing in today's evolving market. After extensive efforts to make the Fayetteville, North Carolina, facility competitive, Goodyear is in discussions with the United Steelworkers to close the facility by the end of 2027.
"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," Ulanski added. "Our focus is on treating all impacted associates fairly and communicating openly as discussions move forward."
The news follows Goodyear's May 7 first-quarter earnings report, in which CEO Mark Stewart described a "challenging environment." The company reported a net loss of $249 million for the first quarter.
Fayetteville Mayor Mitch Colvin addressed the situation, saying, "While this news is disappointing, Fayetteville has always risen to meet challenges head-on."
In the summer of 2022, the Fayetteville United Steelworkers Union threatened a strike over contract negotiations that had stalled over wages.
Ultimately, a new four-year contract was agreed upon.
Since then, the company has reported a loss in sales.
Questions remain about potential severance packages and next steps for affected workers. Employees said they are still processing the news and working to determine their options moving forward.
- The Associated Press contributed.
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