Michelin announced on May 28, 2025, it will cut 1,500 jobs in France over the next three years to lower costs linked to high energy, labor, and tax pressures [1, 2, 3]. The reduction represents about 9% of its 17,000 French employees [1, 3].
Two-thirds of the cuts will affect administrative and support functions, while one-third will target industrial and production roles. Olivier Faure-Vauris, Michelin’s HR director for France and Southern Europe, said, "Two-thirds will be made in administrative areas and one-third in industrial operations. The cuts will be carried out with voluntary buyouts, with no forced layoffs" [1].
Affected employees will receive mobility, training, and career transition support, aiming to ease their move out of the company [2, 4, 5]. Despite the headcount reduction, Michelin said it will continue hiring in France [2, 4, 5].
The planned cuts follow about 1,200 job eliminations and two factory closures in France in 2024 [1, 3, 6, 4]. Michelin CEO Florent Menegaux told a French parliamentary committee last year that the company’s French factories were loss-making, stating, "Our French factories were loss-making" [1].
For the first quarter of 2026, Michelin reported revenue slid 5.4% to €6.2 billion with tire volumes down 1.4% [1, 3, 6, 4]. The company cited high operating costs primarily from labor, energy, and some of the highest tax pressures among industrialized countries in France [1, 3, 6]. Michelin said in a statement, "France has high operating costs, mainly because of labour and energy costs, as well as one of the highest tax pressures in industrialised countries" [1].
The firm added, "In a highly unstable economic environment, this approach aims to optimise a cost structure that is too high today and support new job role needs" [2]. Additional cost pressures related to the Iran war were estimated at around €400 million [2].
Michelin’s focus remains on optimizing costs while supporting workers through voluntary departures and assistance programs. The job reductions will be phased out over three years, with the company continuing to recruit personnel in France even as it trims staff.
