Popular tire company makes harsh cost-cutting decision amid declines originally appeared on TheStreet.

When thinking about Formula 1, the world's most prestigious motor racing competition, only a few tire brands come to mind.

This is because the motorsport uses a single tire supplier to ensure an even playing field for all teams, and the selected manufacturer must be exceptionally reliable and capable of meeting the sport’s demanding performance standards.

This popular tire company rose to stardom as Formula 1's tire supplier from 1997 to 2010, providing tires for top teams like Ferrari for many years.

💵💰 Don't miss the move: Subscribe to TheStreet's free daily newsletter 💵💰

Ultimately, the company chose to end its long-standing partnership with Formula 1 in 2010 to refocus its resources and prioritize its business, as the returns on investment no longer met expectations.

Related: Tesla unveils an unusual innovation to win back customers

However, even the world's largest tire and rubber company is not immune to today's economic challenges or devastating shutdowns to make ends meet.

Bridgestone faces troublesome challenges

The multinational tire and rubber company Bridgestone Corp. has faced various business challenges over the last few months, including a decline in tire demand in the North American market, partly due to increased imports of low-priced tires. These bumps in the road have only grown due to U.S. tariff implementations and the uncertain economy.

To mitigate the effects of these challenges, the company developed a Mid-Term Business Plan that would be enacted from 2024 to 2026. This multi-year strategy consisted of significant cost reductions and various restructurings to strengthen the company financially.

Related: When you'll see empty retail store shelves due to tariffs

However, in the first quarter of fiscal 2025, once positive numbers have now flipped, total revenues declined by 1% compared to last year, and the Americas went down 3%.

The company predicts more negative revenues for the rest of 2025, predicting a 2% decline compared to the year prior.

Bridgestone Americas files a WARN notice

Bridgestone Americas Tire Operations, the U.S. subsidiary of Bridgestone Corp.  (BRDCY) , filed a WARN notice with the Tennessee Department of Labor and Workforce Development (TDLWD) on May 30 to inform the state that it will be permanently closing its Bridgestone facility in La Vergne, Tenn., on July 31, impacting 658 hourly and staffed workers.

The Worker Adjustment and Retraining Notification Act, or WARN, requires companies to give employees 60 days' notice before planned closures or mass layoffs.