French tire maker Michelin will eliminate as much as 2,300 jobs across its production facilities in France, although no factories will be closed. The measure comes as the producer reinforces activities outside its core business.
“The plan is part of a broad co-construction and social dialogue approach and will rely on negotiating a three-year framework agreement that will not entail any layoffs. The plan does not rely on plant closures,” the world’s second largest tire manufacturer said in a statement.
According to the company, the step will affect 1,100 positions in offices and 1,200 positions in plants. Some 60 percent of reductions will be implemented through not replacing workers as they retire and offering payouts to others who were willing to leave. The layoffs which will come over three years equate to nearly two percent of Michelin’s global workforce.
The tire maker was forced to reduce its workforce in France, Germany and the United States by almost 1,500 since 2017 amid tough competition from low-cost manufacturers. In France, the company currently employs around 20,000 people.
Michelin said it would create other jobs focused on higher end tires, and those destined for agricultural, industrial or competition use. The company is also planning to focus increasingly on sectors that include hydrogen development, 3D printing, adhesives and plastic recycling.
The manufacturer plans to generate 30 percent of its revenues from activities that are not focused on tire-making by 2030.
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