Michelin plans to cut up to 1,500 jobs in France over the next three years. The tire manufacturer announced this move in late May 2026. The decision was prompted by high costs, less favorable operating conditions, and international uncertainty. At the same time, additional costs of around 400 million euros linked to the war involving Iran are weighing on the company’s planning. Two-thirds of the cost-cutting measures affect administrative roles, while one-third concerns production-related areas. However, the group is relying on voluntary departures, thereby avoiding formal layoffs. (express: 01.06.26)
Michelin cuts jobs primarily in administrative areas
Around two-thirds of the planned cuts affect support functions, including administration, central services, and internal operations. One-third affects industrial areas, whereas production remains largely shielded.
The group continues to employ around 17,000 people in France; consequently, the job cuts affect a major industrial site. Moreover, the decision sends a clear signal to suppliers, regions, and the workforce.
Costs, war, and locational disadvantages intensify the cost-cutting drive
Michelin justifies the plan by citing a cost structure that is no longer aligned with the current situation. The company faces higher cost burdens and reduced financial flexibility. As a result, processes are to be streamlined and tasks redistributed.
The tire manufacturer had only just reaffirmed its 2026 targets in late April. At the same time, management announced further cost-saving measures. However, anticipated additional costs of around 400 million euros are increasing the pressure to act.
European manufacturers are falling further behind due to global risks
This round of job cuts is not an isolated incident; many European manufacturers are grappling with high energy prices, weak demand, and geopolitical risks. Furthermore, industrial momentum is increasingly shifting to other regions of the world.
Michelin had already cut around 1,200 jobs in 2024, and the new plan continues this trend. Consequently, there is growing concern in France that more industrial jobs will gradually disappear.