(Bloomberg) -- Goodyear Tire & Rubber Co. said it will seek a new chief executive officer, cut costs and weigh options for several business lines as part of a sweeping overhaul under pressure from activist Elliott Investment Management.

Richard Kramer plans to step down as CEO and chairman in 2024, the company said Wednesday in a statement. The board has retained an executive search firm to consider internal and external candidates.

Goodyear on Wednesday also announced a “transformation plan” designed to reduce annual costs by $1 billion by 2025, boost profitability and cut debt by $1.5 billion. The company said it could generate gross proceeds of more than $2 billion as it pursues strategic alternatives for its chemical unit, the Dunlop brand and the Off-the-Road equipment tire business.

The moves are the most significant yet for a company that has been cutting jobs in response to weak demand and persistent inflation. Goodyear reached a deal with Elliott in July to appoint new board members and launch a review of its business. The investor had argued that Goodyear was undervalued as a result of strategic missteps.

Goodyear’s shares jumped 8.6% as of 7:35 a.m. Wednesday before regular trading in New York.

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