Michelin to cut 2,000 jobs over next two years

Sept. 10, 2001

Michelin North America Inc. (MNA) will terminate 2,000 workers by the end of 2003 to help reduce $200 million in annual operating costs.

MNA had planned a $125 million reduction earlier this year, but changed that figure in response to continued market declines.

"We need to position ourselves for the future and cannot wait for markets to improve," says Jim Micali, MNA chairman and president.

Most of the jobs will be eliminated via "normal attrition and voluntary severence programs."

Groupe Michelin, MNA's parent company, will take a one-time charge vs. earnings of approximately $100 million during the second half of 2001 "to account for restructuring costs," say company officials. "There will be no material savings realized in 2001."