Michelin will cut 2,300 jobs in the next three years

On January 6, French tire manufacturer Michelin stated that it will cut 2,300 jobs in the next three years as part of the company's plan to streamline operations and increase competitiveness in France. However, Michelin added that the plan does not involve closing factories.

(Image source: Michelin)

As the auto industry is striving to switch from diesel and gasoline-powered vehicles to electric vehicles, the new crown virus pandemic has further hit the auto industry. Michelin's layoffs accounted for 2% of the company's global employees, and the company has more than 127,000 employees worldwide.

Michelin said in a statement, “The plan is part of a broad collaborative construction and social dialogue approach. It will rely on negotiating a three-year framework agreement, but will not rely on closing factories. Michelin said that these measures will affect as many as 1,100 office positions and 1,200 factory positions, and emphasized that nearly 60% of the layoffs will be based on voluntary early retirement plans.

Michelin also emphasized that it is still committed to positioning high value-added businesses in France, and said that its ambitious expansion strategy in the field of hydrogen solutions is an example.

Shortly after the opening of the stock market that day, Michelin shares rose 0.7%, which was more than the 0.15% increase of the Paris CAC 40 index.