Michelin, one of the leading global tyre manufactures including France has announced that it would remove around 2,300 posts from their French establishment as a part of their plan to reinforce production and other activities outside its core business
Michelin says that their roughly three-year plan does not involve drastically cutting down posts with immediate effect, but consist of not replacing workers as they retire and offering payouts to others who were willing to leave.
Currently Michelin employs around 20,000 people in France out of which they will remove 2,300 posts which is unfortunate.
Michelin has had competition from low-cost tyre makers for quite some time now which has hurt Michelin's business. The company has already cut short workforce by almost 1,500 since the year 2017 in France, Germany and the United States.
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However, the company says that they will continue to focus on their products meant for the agricultural and industrial sectors.
"Michelin is not abandoning France and continues to invest massively there," said chief executive Florent Menegaux . Michelin added that it would focus on sectors that included hydrogen development, 3D printing, adhesives and plastic recycling. By the year 2030, Michelin plans to earn around 30 percent of its revenues from activities other than tyre manufacturing.
About Michelin:
The Michelin Group is a global company headquartered in Clermont-Ferrand, France. Founded in 1889, the Michelin Group provides tyres to over 170 countries. The Michelin Group makes tyres locally for your specific needs and road conditions in one of our 69 production facilities around the world.
At Michelin, innovation is the creation of new value which is recognized by our customers. It has played and will continue to play a key role in the Group’s growth and performance. Putting innovation at the heart of our strategy is a firm conviction of ours: innovation, whatever its source, is the main driving force of our development, competitiveness and sustainability.
One of the main lines of Michelin's strategy is to use technology and innovation to make its products and services stand out, so that it can consolidate its leadership and meet its customers' needs as effectively as possible.
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