Michelin launches major restructuring, job cuts planned in US, France

Clermont-Ferrand, France - Michelin Group has launched a major reorganisation, which will see roughly 1,500 job cuts in France, as well as 450 in the US, the tire maker announced 22 June.

In March, Michelin said, the company launched a project for “a new organisation” that would boost growth by adapting its operations to meet the evolving demands of its customers and employees.

The “in-depth transformation”, it added, is intended to improve “customer satisfaction, empower the teams, simplify operating modes and digitalise the group.”

In this new format, Michelin will have 10 regions which will be given operational responsibility. The regions are: Africa – India – Middle-East; South America; Central America; North America; Eastern Asia and Australia; China; Central Europe; Northern Europe; Southern Europe and Eastern Europe.

Additionally, 14 unnamed business lines would develop offers for each customer category, and build strategy for the group.

In the new format, eight operational divisions of ‘research & development’, ‘service technology development’, ‘manufacturing’, ‘supply chain’, ‘marketing & sales support’, ‘purchasing’, ‘operations quality assurance’ and ‘corporate and business services (cbs)’ will support regions and business lines.

According to Michelin, jobs in the US and France will be impacted by the new structuring, with approximately 450 jobs in central functions cut between 2018 and 2021.

Around 1,500 jobs are to go in France through non-replacement of most of the 5,000 French-based employees who are retiring from or otherwise leaving the group by 2021. This will include a net loss of 1,000 jobs at Clermont-Ferrand.

The impact will be partly offset by the start of new activities at Clermont-Ferrand and other French sites. Michelin said it will create 250 new jobs, including highly qualified roles in the fields of high-tech materials and digital technology.

Overall, Michelin said the reorganisation project would not directly impact on its production plants worldwide.