LONDON (Dow Jones) - Goodyear Tire & Rubber said it will cut 1,500 jobs, mostly outside the U.S., as the company tries to compensate for rising raw- materials prices and declining North American volumes.

Goodyear (GT) said it plans to close a U.K. tire plant, stop producing bicycle tires in Poland and will cut logistics, retail and administrative jobs in the E.U., Asia Pacific and its engineered-products lines.

The actions will create annual savings of $30 million to $40 million after tax, and result in a charge of $75 million to $85 million .

The world's largest tire maker said $40 million of that charge will be recognized in the first and second quarters of 2006.

Chairman and CEO Robert Kegan said on the conference call that the company would intensify its cost-cutting efforts.

The Akron, Ohio -based company swung to a loss of $51 million in the fourth quarter on a hike in rubber prices and hurricane-related costs even as sales increased.

Also during the quarter, Goodyear completed the sale of its North American farm tire assets to Titan Tire Corp.

According to a recent note from Deutsche Bank, North American passenger car replacement tire volumes dropped 5.3% in the first two months of the year, though the broker indicated it believes the March decline wasn't as steep.

Shares of Goodyear shed 2 cents to $14.25 in midday trade. (END) Dow Jones Newswires 04-05-06 1301ET Copyright (c) 2006 Dow Jones & Company, Inc.