French government vigilant over Michelin job cuts
Topics: FRENCH MICHELIN
Michelin said on Wednesday it would cut up to 2,300 jobs over three years as part of a new simplification and competitiveness plan in France, adding this would not involve layoffs or plant closures.
The French government has noted that Michelin has said new jobs would be created as part of its restructuring plan, Attal told reporters.
Michelin plans to cut 11% of its French workforce over three years as the tire maker slashes costs and moves more aggressively into new markets in the face of Chinese competition.
Although no factories will be closed, a revamp will lead to as many as 1,200 job losses at plants and 1,100 positions in services, the manufacturer said Wednesday. The reductions will come through early retirement and voluntary redundancy and boost competitiveness 5% a year, it said.
Michelin cited “profound” structural shifts in the tire market led by a massive influx of low-cost tires as it explained the cutbacks. Making its French operations more efficient is key to compete in the future, the company said. ■