Michelin to cut up to 2,300 jobs over next three years

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French tyre maker Michelin said on Wednesday it would cut up to 2,300 jobs over three years as part of a new simplification and competitiveness plan in France, adding this would not involve layoffs nor plant closures.

Michelin is yet another auto-industry victim of the Covid-19 pandemic which has hammered the sector, which was already struggling with the shift to electric vehicles from diesel and gasoline cars.

According to the French tyre manufacturer, the 2,300 job cuts equate to almost 2% of Michelin's global workforce.

The group issued a statement this Wednesday, saying "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", it added.

Michelin said the measures would affect up to 1,100 positions in offices and 1,200 positions in plants, stressing nearly 60% of the job reductions would be based on voluntary early retirement schemes.

The company, which employs more than 127,000 worldwide, also said it remained committed to locating "high value-added businesses in France", saying its "ambitious expansion strategy in hydrogen solutions" was an illustration of this.

(With wires)