Type
Internal restructuring
Country
France
Region
Location of affected unit(s)
Sector
Manufacturing
Manufacture Of Rubber And Plastic Products And Other Non-Metallic Mineral Products
Manufacture Of Rubber And Plastic Products
22.11 - Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres

2,300 jobs
Number of planned job losses
Job loss
Announcement Date
6 January 2021
Employment effect (start)
1 April 2021
Foreseen end date
31 December 2023

Description

Michelin, tyre manufacturer has announced 2,300 job cus in France over three years (10% of its workforce), 1,200 of which are in factories and 1,100 in tertiary functions. It hopes to avoid forced departures, counting on early retirement measures for 60% of the objective and voluntary work for the other departures. In this way, the group intends to increase its competitiveness by 5% per year. The group justifies the need to constantly adapt because of the growing competition from cheap Chinese tyres. For several years now, Michelin has been reducing its industrial footprint in Europe, where its factories are too small and bear too high wage costs.

The announcement has provoked strong reactions from the unions, as the group is expected to achieve good results in 2020. Michelin has already closed four industrial sites in France since 2009 and cut more than 6,000 jobs in the process, reducing its workforce to 18,200 people in France today, excluding Euromaster (including 9,300 in industry and 8,900 in the service sector). 

Michelin announced the closure of its plant at La Roche-sur-Yon (Vendée) by the end of 2020, resulting in 619 dismissals. Michelin has expanded several times within France over the previous few years, in 201020112013, inMay 2016 and October 2017 at its site of La Roche-sur-Yon (Vendée); in October 2017 at La Chapelle Saint Luc (Aube) and in 2018at Blavozy (Haute-Loire) but also made job cuts in 2009 and 2013. In 2017, Michelin announced the closure of one its sites in Clermont-Ferrand by the end 2017 and a reorganisation of its engineering department by 2018.

Update 5 November 2021:Michelin has announced in the framework of its reorganisation to close its site of La Chapelle-Saint-Luc (Aube) which employs 114 people by 2026, rather than to cut 30 positions as expected in the 2,300 jobs reduction plan when it was announced. The company will avoid forced dismissals and use only natural departures or reemployment measures within the group.

Update 4 Decembre 2022: In the framework of the restructuring announced in 2021, Michelin has announced to cut 451 positons in France including 313 at Clermont-Ferrand, 51 at Cholet, 30 at Troyes and 25 at Le Puy-en-Velay. At the same time, the group plans to create 318 jobs. 


Sources

Citation

Eurofound (2021), Michelin, Internal restructuring in France, factsheet number 102961, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/102961.