DES MOINES, Iowa – Due to low tractor sales and a decline in the U.S. farm economy, Bridgestone Corp., has offered its employees buyouts at its Des Moines, Iowa-based agricultural tire plant, according to company officials.

Emily Weaver, Bridgestone director of communications, told Farm World, “Bridgestone regularly evaluates all aspects of its business to ensure we remain competitive, and that resources are allocated in a manner that best supports our business strategy.

“On Jan. 6, we agreed with local United Steelworkers (USW) leadership at our Des Moines agricultural tire plant to implement a voluntary separation option (buyout) due to ongoing demand constraints in the agriculture tire sector,” she said.

“It is important to note that agriculture continues to be a central part of our core tire business globally, and in North America, and these moves will not jeopardize any of our commitments to our customers,” Weaver added.

She said, “Hourly teammates volunteered to resign in exchange for a special severance payment. No teammates were involuntarily laid off.”

Bridgestone announced its decision to close its LaVergne, Tenn., truck and bus radial tire plant, effective July 31.

Company officials said the closing of the LaVergne plant impacts approximately 700 hourly and staff workers, as well as workforce reductions in the company’s U.S. corporate, sales and operations.  

“This decision is part of the company’s strategic initiatives to optimize its business footprint, strengthen its competitiveness, and enhance the quality of the company’s U.S. operations,” a Jan. 23 company statement said. “Bridgestone remains committed to contributing to society, economy, and mobility of people and goods across the U.S.”

“Decisions like this are not easy because of the impact it has on our teammates and their families, and at the same time, we are optimizing our business footprint for the future,” said Scott Damon, CEO of Bridgestone West and group president of Bridgestone Americas, Inc. “We are confident that this decision will strengthen our core business, enabling us to operate more efficiently.”

Weaver said “With U.S. net farm income down 25 percent over the last two years, according to the USDA, farmers are more cautious and reducing their spending on farm equipment, including tires.”