A planned reorganization by Michelin Group "would significantly impact jobs" in the U.S. and France. But there's one part of the business that won't be affected: Michelin's production facilities.

The tire maker says it has launched a project to adapt its operations "to meet the evolving demands of its customers and employees. This new organization is designed to improve the company's reactivity and maintain competitiveness, enabling it to smoothly meet future challenges.

"The purpose of this in-depth transformation is to improve customer satisfaction, empower the teams, simplify operating modes and digitalize the group. The transformation would reinforce both the company's international scope and its France-based sites, notably Clermont-Ferrand."

Here's a look at how Michelin will look in the future.

10 Regions

Michelin will create 10 regions in charge of sales development and customer relationship mangement:

Africa, India and the Middle East South America
Central America North America
Eastern Asia and Australia China
Central Europe Northern Europe
Southern Europe Eastern Europe

14 Business Lines

The company hasn't detailed these lines, but says they would be created to develop offers to "satisfy global customer groups with similar needs around the world."

8 Operational Divisions

Research and Development Service Technology Department
Manufacturing Supply Chain
Marketing and Sales Support Purchasing
Operations Quality Assurance Corporate and Business Services

Corporate Group

Michelin says it would create a "focused" corporate group to streamline its central operations and boost reactivity. The corporate divisions would focus on their strategic missions.

What it Means for Jobs

Implementing the new organization, "and the simplified operating modes it generates, would significantly impact jobs only in the U.S. and France."

There's one cavaet: tire production. Michelin says the change "would not directly" affect any of its production facilities around the globe.

In the U.S.: Approximately 450 jobs would be reduced between 2018 and 2021. "The large majority would result from natural attrition and retirement. Actually, 1,500 employees would leave the company in the same period," the company says.

In France: By 2021, 5,000 employees would leave the company in France, the majority of them due to retirement. Around 2,000 of these would be in Clermont-Ferrand.

"Michelin wishes to seize this opportunity to successfully transform its organization while supporting each employee during this evolution."

The tire maker provided more detail about its French workforce. Michelin plans to:

  • recruit more than 3,500 people externally in France by 2021, including 1,000 in Clermont-Ferrand;
  • start new activities in Clermont-Ferrand and other sites in France, creating 250 new jobs, including highly qualified jobs, especially in the fields of high-technology materials and digital;
  • set up a voluntary early retirement package for waged employees and managers at the Clermont-Ferrand site;
  • progressively reach the target size of the future organizations, without forced redundancies. To achieve this, the Company would not replace 970 retirees, between now and 2021 in Clermont-Ferrand;
  • offer a position and career track in the new organization, by supporting job evolution via an adapted management and training system.

Michelin says it would also locate 290 employees and managers in other countries where it is operating. By 2018, every employee will be offered a position in the new organization.