SALEM, Va. – Nearly 400 workers at Yokohama Tires in Salem face layoffs as the company cuts back production amid declining demand and product phase-outs. The plant is also considering a permanent closure in September 2026.
Tracy Meador, a former Yokohama employee who retired last April after 36 years, said uncertainty about benefits is weighing heavily on current and former workers.
“I’ve talked to a couple guys, friends that are still working there, a couple other retirees,” Meador said. “Everybody’s kind of discussing, are we keeping our pension? Are we keeping our insurance? For how long?”
The nearly 400 employees affected include both hourly and salaried workers. Yokohama says all laid-off employees will continue to receive benefits.
Meador described how production slowed over time. “Everything had gotten slower and slower, we were producing fewer tires a day, and you could see it coming. I think most people up there knew it was coming, just didn’t know when.”
Salem City Manager Chris Dorsey acknowledged the impact on the community. “It’s a pretty big impact for Salem. It’s a financial impact for us, but it’s especially a financial impact for all these families.”
Dorsey said the city is working with state and regional partners to provide job assistance. “We are committed to help in any way we can with this. We’ve already been in touch with the state and some of our regional partners to see what we can do to help with job assistance.”
Yokohama also cited changing customer needs and market demands as reasons the Salem plant is struggling to meet manufacturing goals, prompting consideration of a permanent closure.
“Our hearts go out to the families and the employees involved in this,” Dorsey said.
Meador expressed sympathy for those still working at the plant. “Pray for them and hope everything works out. I couldn’t imagine being there now and not having the years in that I did have. Say a guy with 15, 20 years invested and not knowing what they’re going to get out of all those years would probably be the worst part.”
Because the plant’s hourly employees are represented by the United Steelworkers (USW) union, Yokohama is required to consult with union representatives before any closure decision can be finalized. Those discussions are currently underway, and 10 News will continue to provide updates as more information becomes available.