The tire group Michelin from France is cutting thousands of jobs. The reason for this lies well before the corona crisis.
The French tire manufacturer Michelin plans to cut up to 2,300 jobs in France over the next three years. Almost 60 percent of the planned reduction are to be achieved through voluntary early retirement options, the rest through severance payments, the group announced. Up to 1,100 jobs are affected in the offices and up to 1,200 in the factories.
In the past ten years Michelin has been confronted with profound, structural changes in the global tire market, above all due to “the massive influx of cheap products”, it said in a statement. There must therefore be strategic changes, particularly in France, in order to prepare for the future.
Michelin wants to restructure
The group is therefore planning to modernize the locations and strengthen the premium and special tires segment. At the same time, new business areas are to be established in France – for example in the areas of service, sustainable materials, the energy transition and recycling. The group must significantly improve its overall performance and increase its competitiveness.
For every job lost, Michelin undertakes to contribute to the creation of a new job within a realistic time frame – for example by developing new business models, it said. Michelin now wants to start negotiations with the unions in order to work out a framework agreement.