Issued on • Modified
French tyre giant Michelin to cut nearly 2,000 jobs by 2021
Tyre giant Michelin is to cut nearly 2,000 jobs worldwide by 2021 as part of a reorganisation, the company announced on Thursday, saying there would be no forced redundancies.
The company plans to shed 1,500 staff in France, mostly by not replacing workers when they retire, and a further 450 in the United States.
The announcement comes despite Michelin reporting a 43 percent rise in net profit for 2016 to 1.7 billion euros.
An early retirement scheme is to be launched at Michelin's historic base in the central French city of Clermont-Ferrand, the company said in a statement.
Michelin said in a statement that only 3,500 staff would be hired to replace the 5,000 expected to retire from its French operations by 2021, while in the United States the "large majority" of losses would also come through natural wastage.
"The departure of these staff can be achieved without any suffering, there is no suggestion of forced departures, it will be on a voluntary basis," said Michelin's chief executive Jean-Dominique Senard.
The company aalso plans to begin "new activities" in France that will create jobs, including 250 high-skilled posts.