Sam Gibara: "Weak demand"

And 1,500 posts will go with the axing of two plants run in Australia in joint ventures.

The lay-offs, which follow 10,000 job cuts last year, came as Goodyear revealed a net loss of $203.6m for last year.

The firm, which had not reported a full year loss since 1992, blamed the weak results largely on the slowdown in the global economy.

"Depressed economic conditions, continued weak demand around the world... had a significant impact on our results," said Sam Gibara, Goodyear chairman and chief executive.

But Goodyear, which also owns the Dunlop brand, said it hoped to boost profits this year by raising prices, introducing new products and focusing on top-market lines.

The firm threatened to distance itself from carmakers which failed to swallow price increases.

The statement was well-received on Wall Street, where Goodyear shares stood $1.20 higher at $22.60 in afternoon trade.