Pressure mounts: Valeo cuts 1,100 jobs amid auto industry shift
The crisis in the automotive industry is increasingly affecting not only car manufacturers but also the companies that supply them with components. An example is the French company Valeo, which has just announced job cuts.
Layoffs at Valeo. At the start of the year, the French corporation announced plans to part with 1,100 office workers employed in plug-in hybrid and electric vehicle departments. Now, those plans are becoming reality.
As reported by Bloomberg, the company aims to lay off over 1,000 people in Europe and close two plants as part of restructuring, driven by changes in the automotive industry.
The affected facilities include a research and development centre near Paris and a factory in the French region of Sarthe. Some employees from these sites will be transferred to other offices within the company. However, the job cuts will extend beyond France.
Approximately 200 positions will also be eliminated in the Czech Republic, Germany, and Poland. The layoffs primarily involve "white-collar" workers, including management and support teams.
"The automotive industry is undergoing a transformation, and the volumes are not what we expected. Therefore, we need to review our production," says a Valeo spokesperson quoted by Automotive News Europe.
It is noteworthy that Valeo is not the only component supplier facing challenges. In recent months, similar decisions have been made by Bosch, Continental, Michelin, and Forvia.
