EMCC European Monitoring Centre on Change

Michelin

Company/Organisation:
Michelin

Geographic Location

Country: France
Region: Puy-de-Dôme; Auvergne; Centre-Est
Location of affected unit(s): Clermont-Ferrand

Company

Sector: Manufacturing
Manufacture of rubber and plastics products, and other non-metallic mineral products
22.11 - Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres
Number Employed: 11000

Employment Effects

Announcement Date: 22-06-2017
Planned Job Reductions min: 1500
Planned Job Reductions max: 1500
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2017
Foreseen End Date: 01-01-2021
Other Job Reduction Measures: 1500

Additional Information

Tyres manufacturer Michelin has announced an in-depth transformation "to improve customer satisfaction, empower the teams, simplify operating modes and digitalise the group". This worldwide transformation affects mainly the United States (450 job cuts) and its France-based sites, notably Clermont-Ferrand, with 1,500 job reduction by 2020. The reduction of  group workforce in France,  will happen from non-replacement of retired employees:  3,500 employees will be recruited to replace the 5,000 departures in retirement and early-retirement expected until 2021. Therefore, there will be 1,500 job reductions including 979 for its sites in Clermont-Ferrand (Puy-de-Dôme).  The aim is to increase the "agility" of the company and to save 1.2 billion of costs per year by 2020.

The company has expanded several times within France over the previous few years, in 201020112013, in May 2016 in its site of La Roche-sur-Yon (Vendée) in December 2016 in its site of Cholet (Maine-et-Loire) and in March 2017 in its site of Blanzy (Saône-et-Loire). But the group also had job cuts occurrences in 2009 and 2013. Michelin has recently announced a plan to restructure one of its sites in Clermont-Ferrand, with a site closure by the end 2017 and a reorganisation of its engineering department by 2018.

The group Michelin employs about 11,000 employees in Clermont-Ferrand and 111,700 worldwide.