Valeo cuts over 1,000 jobs in European restructuring shake-up
The automotive crisis is increasingly affecting not only car manufacturers but also the companies that supply them with components. An example is the French company Valeo, which announced workforce reductions.
Layoffs at Valeo: At the beginning of the year, the French corporation declared its plans to part with 1,100 office workers employed in plug-in hybrid and electric vehicle departments. Now, those plans are turning into actions.
According to "Bloomberg," the company will lay off over 1,000 people in Europe and close two plants as part of restructuring prompted by changes in conditions in the automotive industry.
The facilities affected include a research and development center near Paris and a factory in the French region of Sarthe. Some employees from both locations will be relocated to other company offices. However, the layoffs will not be confined to France.
About 200 positions will also be eliminated in the Czech Republic, Germany, and Poland. The layoffs primarily involve "white-collar" workers—management and support teams.
"The automotive industry is undergoing a transformation, and the volumes are not what we expected," says a Valeo spokesperson quoted by "Automotive News Europe."
It is worth mentioning that Valeo is not the only component supplier facing challenges. In recent months, similar decisions have been made by Bosch, Continental, Michelin, and Forvia.
