Due to escalating costs and a competitive market situation, French tyre maker Michelin is mulling over reducing as many as 1,500 roles in France over the next three years through a voluntary scheme as it seeks to lower costs.
In a statement, it said around two-thirds of the affected positions would come from support functions, while the remaining third would be in industrial activities.
The company said it has notified employee representatives and union bodies about the proposed plan.
“In a global environment marked by shrewd international competition and heightened macroeconomic and geopolitical tensions, the Michelin Group is pursuing efforts to sustainably improve its performance,” the company said in a statement.
Michelin said the French operating environment is also affected by “strong economic and regulatory constraints: high production costs.”
“This staffing reduction project in France is aimed at optimising a cost structure that is too high today, supporting métier changes in the workplace and simplifying the company’s functioning modes,” the statement added.
As part of the process, Michelin said it will negotiate an agreement covering employment and career path management. This would be accompanied by external mobility measures through annual collective mutual termination agreements.
Michelin employs around 17,000 people in France, which is its global headquarters and also where it has its worldwide R&D centre, and 13 manufacturing sites.
At the end of April, the ?company had confirmed its 2026 targets ?but ?said it would need to keep on improving its cost structure, partly to mitigate an ?additional EUR400 ?million in costs ?linked to the US/Iran war.