Goodyear Tire & Rubber has approved a rationalization and workforce reorganization plan in Europe, the Middle East and Africa that would lead to 1,200 job cuts, the company said in a regulatory filing on Friday.

The decision comes after activist investor Elliott Investment Management in May criticized Goodyear for mismanagement and lagging behind rivals Michelin and Bridgestone.

Elliott, which holds a 10% stake in the tire company, had also pushed Goodyear for an operational review and sale of its stores.

The restructuring will result in "significant" savings from 2024 till 2025 and comes as the company seeks to streamline its business and improve its cost structure, Goodyear said on Friday.

The Ohio-based firm forecast total pre-tax charges of between $210 million and $230 million by 2025 due to the restructuring.

The 125-year-old company also said it expects to inform investors of its broader plan during the fourth quarter.

Last month, Goodyear swung to a loss of 73 cents per share for the second quarter, from a profit of 58 cents per share a year earlier.

(Reporting by Pratyush Thakur in Bengaluru; Editing by Devika Syamnath)