Bridgestone eliminates 700 jobs in blow to growing Nashville suburb
Nashville-based Bridgestone Americas plans to shutter its La Vergne tire plant later this year, which will leave 700 workers based in Rutherford County without jobs.
The U.S. arm of Japanese manufacturing giant Bridgestone Corporation explained the decision on Thursday as part of a plan to “optimize its business footprint” and strengthen competitiveness in the automotive parts industry.
Bridgestone has been “updated and optimizing” its business across the U.S., including in its Nashville headquarters, a statement from the company said. Forthcoming workforce reductions will impact the U.S. corporate, sales and operations teams. Bridgestone is also paring down its Des Moines tire plant’s capacity.
The La Vergne plant’s last day will be July 31 after over five decades in operation.
La Vergne mayor plans to move community forward
La Vergne Mayor Jason Cole said he was sad to hear that one of the first industrial manufacturers to come to La Vergne is shutting down.
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“While we are sad to see them go, we are committed to continuing our work with the Rutherford County Chamber of Commerce and other partners to bring new, high quality industrial and commercial businesses to La Vergne,” Cole said.
The plant became Bridgestone’s first U.S. factory when it opened on 150 acres of La Vergne farmland in 1972. Leading up to the closure, total workforce numbers at the plant have dropped by about 300 people over the last two years.
Bridgestone profits decline ahead of closure
“Decisions like this are not easy because of the impact it has on our teammates and their families, and at the same time we are optimizing our business footprint for the future,” CEO Scott Damon said in a statement. “We are confident that this decision will strengthen our core business, enabling us to operate more efficiently.”
During a Nov. 11 earnings presentation, the company reported an increase in revenue, but a decrease in profit through the first three quarters of fiscal year 2024 compared to the year prior. That was the case globally and in the U.S. The third quarter, specifically, saw improved U.S. sales that the company credited to “maintaining and reinforcing a solid foundation of premium tire business.”
This is Tennessee’s third major layoff of the year thus far, following 65 cuts at Dollar General’s corporate headquarters in Goodlettsville two weeks ago and Perdue Farms announcing the closure of its Monterey facility this week. Nissan also announced 9,000 global layoffs in November but has not yet said how many Tennessee workers will lose jobs.
Nashville’s historically high unemployment in manufacturing
Nashville Mayor Freddie O’Connell said his office learned about the layoffs in the aftermath of the Antioch High School shooting on Wednesday. That’s meant he hasn’t yet had an opportunity to discuss the situation with Jamari Brown, Metro’s director of economic and community development.
O’Connell did say, however, that the mayor’s office has engaged in ongoing discussions with executives at Bridgestone and is still analyzing the local impact.
“We know that there are a number of Antioch residents who have been employed there,” O’Connell said. “I think it’s always tough when an economic environment results in layoffs, but I will say Bridgestone has been a significant economic partner to both Nashville and Middle Tennessee.”
Currently, there are about 87,000 manufacturing jobs in the Nashville Metropolitan Statistical Area, making up about 7% of the total workforce. Over the last five years, the industry has shrunk by half a percent, and it is historically one of the industries with the highest unemployment rate in Nashville.
Planning for the facility’s future
“It’s a tough day when an announcement like that gets made,” Rutherford County Chamber of Commerce President Paul Latture said, adding that the organization is working with the company to help displaced employees.
After the closure announcement, Latture said he spoke to a Bridgestone official about marketing the factory on Waldron Road in La Vergne for a potential user of the property. No specific plans have been released.
More employment opportunities in Middle Tennessee
Among La Vergne’s partners in attracting new business is the Rutherford County Industrial Development Board, which has the authority to offer tax incentives for businesses adding or expanding operations and jobs in Rutherford County.
“I always hate to see any of our long term existing business decide to cease operating,” Board Chairman Bill Jones said. “It impacts the community and the people who work for that company. That’s why we continue to recruit new businesses to the community and encourage the expansion of existing businesses in the community, so that we can hopefully provide opportunities for those employees who are going to be looking for new work.”
La Vergne, in recent years, has added to its business roster with frozen beverage giant Icee relocating its headquarters and a distribution center to the city from California. Two Amazon operations and a BJ’s Wholesale Club store have also have opened in La Vergne.
The city’s other large industrial and commercial workforce operations include Ingram Content Group, Cardinal Health and Saks Fifth Avenue Distribution Center.
Nonetheless, Rutherford County Mayor Joe Carr said Bridgestone’s decision to close the Middle Tennessee plant will deeply affect La Vergne.
“This facility has provided employment for many in the La Vergne community for decades as it was the first Bridgestone plant in the United States, and the employees made the first tire,” Carr said in a statement. “Rutherford County remains a great place to live, work and do business. As these citizens struggle to find work by the summer, I have full faith the community can come together to help our fellow citizens find job opportunities.”
In addition to the Rutherford County Chamber of Commerce, The Nashville Chamber of Commerce is also working with community partners to help impacted workers ahead of the July 31 shutdown date.
“Bridgestone has had a positive impact on our region for over 50 years, and we are committed to working with Bridgestone, our economic development partners, state and local agencies and community partners to support impacted workers by connecting them with local resources, workforce development initiatives and job placement opportunities across the region,” Chamber Director of Communications Malick Gaye said in a statement. “We remain confident in Middle Tennessee’s economic vitality and ability to adapt to evolving industry needs.”
— Austin Hornbostel contributed to this report.
Hadley Hitson covers business news for The Tennessean. She can be reached at hhitson@gannett.com. To support her work, subscribe to The Tennessean.
Reach reporter Scott Broden with news tips or questions by emailing him at sbroden@dnj.com. To support his work with The Daily News Journal, sign up for a digital subscription.
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