Michelin to cut up to 1,500 jobs in France to reduce costs
Michelin Announces Cost-Cutting Measures Amid Economic Uncertainty
Overview of Job Cuts
May 28 (Reuters) - French tyre maker Michelin is considering a plan to cut up to 1,500 jobs over three years to reduce costs, the company said on Thursday, as it faces a hit from the Iran war.
Company Statement on Restructuring
"In a highly unstable economic environment, this approach aims to optimize a cost structure that is too high today and support new job role needs," Michelin said in a statement.
Breakdown of Affected Positions
Of the 1,500 jobs affected, two-thirds would be in support functions and a third from the industrial sector, Michelin said, adding that it has nearly 17,000 employees in France and plans to continue to hire there.
Voluntary Basis and Employee Support
The company said the job cuts would be on a voluntary basis and staff would be offered mobility and training opportunities to shift towards new roles.
Financial Impact and Future Outlook
Cost Structure Adjustments
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 €400 million ($464 million) in costs linked to the Iran war.
Exchange Rate Information
($1 = 0.8615 euros)
Reporting Credits
(Reporting by Lucie Barbier; Editing by Joe Bavier and Gus Trompiz)