Michelin and Schaeffler closing plants across Europe, thousands of workers to be laid off

(Patria) - Michelin has announced that it will close plants in the French cities of Cholet and Vannes by the beginning of 2026, employing more than 1,250 workers.

The closure, according to the company, is inevitable due to increasing competition from Asia and the decline in Europe's competitiveness, particularly due to inflation and high energy prices.

The French tire manufacturer announced last year that it would close two factories in Germany. These factories produced tires for heavy-duty vehicles.

A similar step was announced on the same day by German Schaeffler, which plans to reduce jobs across Europe, STA reported.

The company announced that it will support both French regions where factories will be closed and will offer affected workers jobs within other parts of the group or the option of early retirement.

Production will be temporarily suspended at both plants until November 13 to allow management and unions time for collective and individual discussions with workers.

German automotive and industrial parts manufacturer Schaeffler announced the elimination of 4,700 jobs, 2,800 of which will be in Germany at ten different locations, STA reports.

Layoffs will also affect five other locations across Europe, with two of them being completely closed. The company has not yet revealed which specific locations will be affected.

Business restructuring is planned for the period between 2025 and 2027, and Schaeffler expects to achieve savings of 290 million euros annually starting from 2029.