Economy. Michelin will cut up to 2,300 jobs in France

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The Michelin Group announced on Wednesday that it would cut up to 2,300 jobs in France without forced departures as part of a “plan for simplification and competitiveness”.

The tire maker aims to 'improve its competitiveness by up to 5{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} per year' for tertiary activities and for industry, which 'could mean downsizing by up to 2,300 positions within three years' ', of the 21,000 that Michelin has in France has.

The group, which faces competition from low-cost tires, has already shed almost 1,500 jobs since 2017 as part of its restructuring, particularly at its historic headquarters in Clermont-Ferrand (Puy-de-Dôme) and in the USA. In addition, the La Roche-sur-Yon (Vendée) and Bamberg locations in Germany were closed.

From Clermont-Ferrand via Troyes to Epinal

By 2024, 'almost 60{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of the planned departures would be based on early retirement and the remainder through accompanied voluntary departures,' says a Michelin press release in the context of the collective contract termination (RCC).

From Clermont-Ferrand via Troyes to Epinal, this new restructuring will affect 'all of the Groups French sites,' said Florent Menegaux, President of the Clermont-Ferrand Group.

'Michelin is committed to restoring as many jobs as possible,' he added. However, the company plans to support the regions and step up its activities in various areas in parallel with this simplification plan.

The number of departures from place to place will be determined in the coming months

The number of departures from location to location will be determined in the coming months: The management of the group would like to 'quickly' start negotiations with the unions on a 'framework agreement for a period of 3 years'.

In the last ten years, the group was 'confronted with profound structural changes on the world tire market, which are particularly characterized by the massive introduction of inexpensive products'. It must therefore 'support the strategic changes in its activities in order to prepare for the future. This is particularly the case in France, where the vitality of its positions requires a significant increase in its competitiveness', he stressed.

'Michelin is not leaving France' and 'will reinvest part of the savings made in developing new activities', underlines Florent Menegaux.

The 15 industrial sites in France have gradually specialized in high-end, agricultural, industrial and competitive tires. At the same time, Michelin is 'pursuing its strategy of finding new high value added activities in France' such as hydrogen, 3D printing, adhesives and the recycling of plastic waste.

Michelin aims to generate 30{7d3485657e94c2a51293ca186d4450b2f27c317aa7ee3509dac6c8bbf5461118} of its sales without tires by 2030.