The job cuts come after Goodyear cut 4000 jobs, or 5 percent of its global workforce, last year. The company has not specified where this latest round would occur.
Goodyear aims, through job cuts and a pay freeze, to save $700 million dollars this year, after reporting a loss of $330 million in the last quarter of 2008. That's a loss of about 1.37 per share
The company is also looking to sell off nearly $500 million dollars worth of inventory this year and cut production dramatically over the next two. It says demand for tires fell 19 percent worldwide last quarter.
In a statement, Goodyear Chairman and CEO Robert Keegan said job cuts and reduced production are because of shrinking demand for autos. Keegan wrote that savings measures would help the company quote "address the market challenges we will inevitably face in 2009."