EMCC European Monitoring Centre on Change

Michelin

Company/Organisation:
Michelin

Geographic Location

Country: France

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: 18200

Employment Effects

Announcement Date: 06-01-2021
Planned Job Reductions min: 2300
Planned Job Reductions max: 2300
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-04-2021
Foreseen End Date: 31-12-2023
Other Job Reduction Measures: 2300

Additional Information

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 2010, 2011, 2013, in May 2016 and October 2017 at its site of La Roche-sur-Yon (Vendée); in October 2017 at La Chapelle Saint Luc (Aube) and in 2018 at 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.

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