A sign of the prevailing economic gloom, three leading European companies announced massive job cuts on Tuesday. Auchan will cut 2,389 jobs and close numerous stores, Michelin will close two factories and lay off 1,254 employees, while Schaeffler will cut 4,700 positions.
Auchan presented its staff representatives with a draft social plan threatening 2,389 jobs in France. In detail, Auchan, which employs around 54,000 people in France, plans to cut 784 positions within its headquarters and 915 positions in stores.
The distributor should cease its direct home delivery activity, which would result in 224 job cuts as well as the closure of around ten unprofitable points of sale (466 positions eliminated), including three hypermarkets.
Management hopes to limit the number of redundancies through support for the employees concerned, retraining training, reclassification leave and voluntary departure plan. It also provides for the creation of 114 positions in “drive” activities and 205 within support functions.
“It’s not a degrowth project that we want to manage, lowering costs is a means, not an end,” assured the distributor’s boss Guillaume Darrasse. Auchan has had a series of bad economic years and its holding company Elo Groupe announced in July a net loss of almost a billion euros over the first six months of 2024.
Michelin closes two factories
For its part, Michelin announced the closure before 2026 of its factories in Cholet and Vannes, in western France, because of the “collapse” in sales of tires for trucks and vans. These sites employ 1,254 employees.
“It is the collapse of activity which has caused this situation, and I want to tell all these employees that we will not leave anyone behind,” declared Michelin boss Florent Menegaux. The closure has become “inevitable” due to Asian competition in van and heavy goods vehicle tires, the sectors of the two factories, but also the “deterioration of Europe’s competitiveness”, indicated the group’s management.
In a context of crisis for automotive equipment manufacturers, the group is committed to “supporting each of the employees concerned with tailor-made solutions”, with job offers in other companies or in the group, or even early retirement.
boi with agencies
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