DANVILLE, Va. (rbs news now) — Goodyear Tire & Rubber Co., Danville’s largest employer, will lay off 850 employees at its local tire manufacturing plant as part of a global transformation plan, the company confirmed.

The decision follows an agreement with the United Steelworkers union to reduce production capacity, according to a filing with the U.S. Securities and Exchange Commission.

The layoffs will impact both associates and contracted positions, though the facility will continue producing aviation tires and conducting mixing operations.

Goodyear expects to substantially complete the job reductions by the end of 2025.

The Danville plant, which covers 2 million square feet on 56 acres, employed about 1,800 union workers as of October.

The company previously announced in January that it would be shifting commercial tire production to other facilities to reduce costs and improve efficiency.

Danville City Manager Ken Larking expressed concern over the layoffs.

“We recognize the impact this decision will have on the affected employees, their families, and our local economy,” Larking said in a statement. “We will work closely with state and regional partners to connect displaced employees with workforce training, job placement assistance, and support services.”

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