January 6th local time, Michelin, the tire and rubber manufacturer of France’s largest tire and rubber manufacturer and the world’s second largest tire and rubber manufacturer, announced that it would cut 2,300 employees in France over the next three years.
In a press release issued on the same day, Michelin Group said that the layoffs would involve the company’s headquarters in France and all 15 factories in China, mainly through early retirement and voluntary separation.
The number of employees cut accounts for about 10% of the total number of employees in France.
Michelin Group president Florent Meneg said in an interview with AFP that the staff reduction is a strategy to improve competitiveness.
In the past decade, the world tire market has undergone profound structural changes, and a large number of cheaper products have entered the market.
The Michelin Group needs to make strategic changes to cope with the future.
Menage said that in the future, 15 factories in France will mainly focus on the production of high-value-added products and innovative research and development activities such as industrial, agricultural and racing tires.
In addition to the traditional tire manufacturing business, Michelin will open more new businesses in France, including high-value-added industries such as 3D printing and hydrogen battery production.
Michelin hopes that by 2030, 30% of the company’s revenue will come from businesses other than tire manufacturing. He also said that the group will create new jobs through the new business.