NASHVILLE, Tenn. — Bridgestone Americas has made the decision to shut down its truck and bus radial tire manufacturing facility located in LaVergne, Tennessee, resulting in the layoff of 700 employees, according to a company announcement.

The firm indicated that this closure is part of a broader strategy to “optimize its business footprint” and enhance its competitive positioning in the market.

Along with the LaVergne plant closure, Bridgestone has also revealed that it will be implementing workforce and capacity reductions at its agriculture tire facility situated in Des Moines, Iowa. Additionally, further layoffs will occur in the corporate, sales, and operations divisions in the United States. In Latin America, the company plans to make similar cuts in both workforce and production capabilities in Argentina and Brazil.

A spokesperson for the company, Emily Weaver, explained via email that the workforce reductions are necessary due to the pressing economic challenges faced by the company. “Reductions in force are impacting our corporate, sales, and operations in the Americas where a realignment of staffing levels is needed in response to the challenging economic environment,” said Weaver. The spokesperson also noted that of the nearly 44,000 employees working across North America and Latin America, just around 4% will be exiting the company as a result of these voluntary and involuntary workforce adjustments.

The LaVergne facility holds historical significance as it was the first tire manufacturing site in North America for Bridgestone Corporation. The production of tires for passenger vehicles and light trucks ceased at this location in 2009, which led to the layoff of approximately half of its workforce at that time. Weaver added that members of the United Steelworkers master union at LaVergne have preferential hiring rights at Bridgestone’s other plants located in Des Moines, Akron, Ohio, and Russellville, Arkansas.