The Goodyear Tire & Rubber Company has announced a rationalization plan that will include cutting 850 jobs at the Danville plant. According to a report from Investing.com, the Danville location will continue to make aviation tires and mixing operations.

Buyouts will be offered to around 800 of the employees paying $3,000 per year of employment. The minimum buyout will be $25,000 with the maximum at $105,000.

Employees with over 20 years of experience will get six months of health insurance, while those with less will have insurance for three months.

The goal of the plan is to cut production expenses per tire in the Americas and cut back on production capacity.

The news comes after the company announced in January that the Danville plants commercial tire production will be moved to other facilities in its footprint.

Goodyear says they expect that this move will boost the operating income in the Americas segment by about $15 million this year and then $65 million per year after.

Danville City Manager Ken Larking issued a statement on Wednesday morning:

“We are deeply concerned about Goodyear’s announcement that it will be eliminating 850 jobs at its local facility. Goodyear has been a significant employer in our community for decades, and we recognize the impact this decision will have on the affected employees, their families, and our local economy. We will work closely with state and regional partners to connect displaced employees with resources, including workforce training, job placement assistance, and support services. Danville has proven time and again that we are a resilient community. While this news is difficult, we remain committed to strengthening our local economy, attracting new investment, and creating opportunities for our workforce. We will continue working with Goodyear and our economic development partners to navigate this transition and support those impacted during this challenging time.”