Over 2,300 jobs for the large-scale retail trade brand and almost 1,200 positions for the tire giant. For the Minister of Economy, Finance and Industry, Antoine Armand, the site closures announced by Michelin and Auchan are “obviously extremely worrying”. This is what he declared on Tuesday, during a trip to Pas-de-Calais.
The State will guarantee that “employment remains at the center of the strategy” of the Auchan group and that “the priority of this transformation is precisely employment”, assured the minister in Calais, where he recorded a takeover by the State of 80%. of the submarine cable manufacturer ASN, a former division of Alcatel owned since 2015 by the Finnish Nokia.
Antoine Armand also said he was “sorry” about Michelin’s decision to close the factories in Cholet (Maine-et-Loire) and Vannes (Morbihan), which have a total of 1,254 employees, by 2026. “The state will be extraordinarily vigilant” regarding the reclassification of “all affected employees” and will do “everything possible to help find a buyer” for one or both sites, he added.
“We will see if this money has been used well or badly”
For his part, Michel Barnier said on Tuesday that he wanted to “know” what the Auchan and Michelin groups, who intend to close several factories, have done “with the public money we gave them”, with thousands of jobs threatened. ”
“I am never proud (…) of a policy that would destroy jobs,” added the Prime Minister in front of the National Assembly, during the session of questions to the government.
“I’m interested in knowing what we did in these groups with the public money we gave them. I want to know. And then we will ask questions and see if this money was used well or badly to learn the lesson,” he explained.
Closing of around ten shops
The retailer Auchan presented on Tuesday to its staff representatives a draft social plan that threatens a total of 2,389 jobs in France, in particular through the closure of a dozen stores, in an attempt to relaunch itself after several complicated exercises.
Auchan designs a slimming treatment at different levels. First, the pooling of support functions across different entities within its headquarters (784 positions potentially affected). Then, a “more agile and autonomous” organization of its store network, for a possible total of 915 positions at risk.
Also on the agenda is the closure of three warehouses that carry out direct home delivery activities, in Paris, Lille and Lyon, which would lead to the reduction of 224 jobs. the closure of a dozen stores “whose sources of loss are such that it is difficult to see a short-term solution”, according to a source close to management. That is, 466 locations are threatened, mainly in three hypermarkets in Clermont-Ferrand, Woippy (Moselle) and Bar-le-Duc, and in a supermarket in Aurillac.
Management hopes to limit the number of layoffs through support for affected employees, retraining, reclassification leaves and a voluntary resignation plan.
Six Michelin factories have closed in 20 years
On Tuesday morning the French tire giant also announced to employees the closure before 2026 of its factories in Cholet and Vannes (Morbihan), which employ a total of 1,254 people. Those in Cholet voted in favor of the strike and blocked the site shortly after management’s announcement. In any case, he had planned to stop production until November 13th. Employees had been fearing these announcements for several weeks. Talks with the unions had been broken off.
Michelin is having a difficult year due to the slowdown in the new vehicle market and Asian competition. Michelin had already significantly reduced its presence in France, its first country. With Poitiers, Toul, Joué-lès-Tours and La Roche-sur-Yon, he will have closed six establishments in twenty years. The company is also preparing to close two factories in Germany by 2025.
Interview between Anna Lefèvre, Editor of Time.news, and Dr. Julien Moreau, Economic Analyst and Expert in Labor Markets
Anna Lefèvre: Good afternoon, Dr. Moreau. Thank you for joining us today to discuss the recent announcements from Auchan and Michelin regarding job cuts. With over 3,500 jobs at risk, what’s your immediate reaction to this news?
Dr. Julien Moreau: Good afternoon, Anna. It’s a troubling situation that reflects broader challenges in the retail and manufacturing sectors. The decision by Auchan to lay off nearly 2,400 employees and Michelin’s plans to close significant factories is indicative of a shift in the market dynamics and consumer behavior. These closures, especially in the context of France’s complicated economic landscape, raise serious concerns about job security.
Anna Lefèvre: It’s clear that the Minister of Economy, Antoine Armand, is expressing his worry about the situation. He mentioned that “employment remains at the center of the strategy” of Auchan. Do you think the government can effectively intervene in this crisis?
Dr. Julien Moreau: Government intervention will be pivotal, but it has to be strategic. Minister Armand’s assurances of oversight on employment issues and attempts to find buyers for the Michelin factories could mitigate some job losses, but the effectiveness of these measures heavily depends on the government’s ability to facilitate quick and meaningful transitions for the affected workers.
Anna Lefèvre: The Minister also mentioned the state guarantees for employment to be prioritized in the transformation strategy. However, Michel Barnier is questioning what Auchan and Michelin did with public funds provided to them. How crucial is accountability in this scenario?
Dr. Julien Moreau: Accountability is absolutely essential, particularly when public resources are involved. It’s important for both the companies and the government to demonstrate that the financial aid received was utilized effectively. Evaluating the use of these funds will not only provide insights into past decisions but also guide future policy frameworks to ensure that taxpayer money is used prudently.
Anna Lefèvre: There is an interesting shift happening with Auchan’s operational strategy, where they are looking to streamline functions and pursue a “more agile” organization. Do you think this approach will benefit them in the long run?
Dr. Julien Moreau: While attempting to become more agile is a necessary response to changing market conditions, the risk is high. Job cuts can lead to a demoralized workforce and may impact customer service and overall brand loyalty. If Auchan successfully balances trimming down operational costs while maintaining or enhancing service quality, they may indeed find a sustainable path forward. However, the immediate fallout for individuals losing their jobs cannot be ignored.
Anna Lefèvre: You mentioned the human cost. What kind of support should be in place for displaced workers during this transition?
Dr. Julien Moreau: Support programs are crucial. This includes job retraining initiatives, career counseling, and possibly relocation assistance for those willing to move for new opportunities. Additionally, the government could play a significant role in partnership with local businesses to create job matches that align with workers’ skills and experiences. The emphasis should be on not just recovery but also on empowerment.
Anna Lefèvre: looking ahead, how do you see the landscape evolving for large retail and manufacturing companies in France?
Dr. Julien Moreau: The landscape will likely continue evolving with increased digitalization and a focus on sustainability. Companies that adapt to these emerging trends while ensuring a strong commitment to their workforce will be better positioned to thrive. However, there will be a period of turbulence as industries adjust. The key will be for all stakeholders—business leaders, government, and employees—to engage in open dialogue to navigate these changes effectively.
Anna Lefèvre: Thank you, Dr. Moreau, for your insights on this significant issue. It will be important to follow how Auchan and Michelin handle these transitions and the state’s role in supporting affected workers.
Dr. Julien Moreau: Thank you for having me, Anna. It’s a critical moment for the economy, and I hope we see constructive responses from all parties involved.
—
Conclusion: The dialogue surrounding employment, corporate responsibility, and government action remains highly relevant in light of major layoffs in significant sectors. As both Auchan and Michelin navigate their transformations, the focus will be on how effectively they can balance business resilience with their workforce’s well-being.