KTKA

Goodyear Tire and Rubber Co. plans to cut 5,000 jobs this year after posting a fourth-quarter loss of $330 million and a 21 percent decline in sales. The cuts equal almost 7 percent of Goodyear's work force and follow about 4,000 jobs it eliminated last year.

Company spokesman Keith Price declined to say how many jobs, if any, would be affected in Topeka or when layoffs would begin.

Price did say that Goodyear will also freeze salaries throughout the company. He explained that 20 percent of the company's business is making tires for new vehicles. The other 80 percent is the sale of replacement tires for vehicles. Price said that, because of the state of the economy, and because people are driving less, Americans are replacing their tires less often, leading to a decline in sales.

The Goodyear plant in Topeka makes commercial tires, including those for bulldozers and large off-road vehicles. The $787 billion dollar stimulus package signed Tuesday by President Barack Obama includes billions of dollars for road construction and other projects. When asked if that might create an increase in demand for the Goodyear products made in Topeka, Price said that an increased demand could be expected some time in the future. However, he said because there are no estimations about such construction work, it was too early to make personnel decisions based on the perceived impact of the stimulus package.