Goodyear posts loss, plans 5,000 job cuts

Goodyear Tire & Rubber Co plans to cut 5,000 jobs worldwide in 2009, or 6.7 percent of its staff, after a prolonged downturn in vehicle demand led to a deeper-than-expected loss in the fourth quarter.

Goodyear (GT.N), the largest U.S. tire maker, said it would freeze salaries worldwide and cut production capacity as part of efforts to reduce costs by $700 million this year. The target adds to $1.8 billion of cost savings completed over the past three years.