Michelin to Cut Nearly 2000 Jobs Worldwide

Michelin to Cut Nearly 2,000 Jobs Worldwide

The announcement comes despite Michelin reporting a 43% rise in net profit for 2016 to $1.8 billion.

As part of a reorganization Michelin said on June 22 that it will cut nearly 2,000 jobs worldwide by 2021. There would  be no forced redundancies the company said.

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% rise in net profit for 2016 to 1.7 billion euros (US$1.8 billion).

An early retirement scheme is to be launched at Michelin's historic base in the central French city of Clermont-Ferrand.

Michelin said 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 attrition.

"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," Michelin's chief executive Jean-Dominique Senard.

The company said it plans to begin "new activities" in France that will create jobs, including 250 high-skilled posts.

Copyright Agence France-Presse, 2017

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