SALEM, Va. – Yokohama Tire announced on Friday that they have plans to “significantly reduce tire production” at their Salem location, resulting in the layoff of around 392 hourly and salaried employees at the facility.
Yokohama said the reduction in production will start at the beginning of March. The company cited the “expiration of certain product lifecycles and reduced demand for other products manufactured at the Salem facility” as reasons for the move.
Recommended Videos
Impacted salaried workers will receive layoff benefits under existing company policies, and hourly workers will receive layoff benefits based on the terms of the collective bargaining agreement between Yokohama and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union and its Union No. 1023.
Yokohama is also working towards a permanent closure of the plant. All employees have been informed that all tire production could cease in July 2026, followed by the plant officially closing in September. This timeline coincides with the expiration of the 2022-2026 collective bargaining agreement. Yokohama is also under obligation to work with representatives of USW Local Union 1023 prior to the finalization of any closure decision.
We will update you with more information as it becomes available.