Factory closures in France will likely affect thousands of jobs in the coming weeks and months, Industry Minister Marc Ferracci warned on Saturday. Michelin and Auchan, France’s two biggest employers, earlier announced the cuts, sparking fears that unemployment could rise again after years of ongoing improvement.
“There are a number of sectors in a worrying situation,” Ferracci told France Inter radio on Saturday, citing the chemical, automotive and metallurgy industries. He added that these difficulties are due in particular to “very strong international competition … which is not always very fair because it is highly subsidised in China and the United States.”
French tyre company Michelin announced it will close its facilities in Cholet and Vannes in western France due to high costs and cheap Asian competition by early 2026, resulting in the loss of 1,254 jobs. Michelin’s actions have outraged French trade unions. The CGT called on all Michelin workers to go on strike, while the CFDT urged management and the government to reconsider the closure and look for alternatives.
In a speech at the National Assembly on Tuesday, Prime Minister Michel Barnier said he regretted Michelin’s decision and that all possible assistance should reach the affected workers. “The automotive sector is in a difficult spot and not only in our country,” Barnier said, adding that Europe must protect its auto industry against “unfair” foreign competition with stronger action and less “naiveté.”
Supermarket retailer Auchan plans to cut more than 2,000 jobs, the company said on Tuesday. It will cut 2,389 jobs in various departments, adding that the changes will create 319 jobs. The company said it employs 54,000 people in France.
The minister admitted that thousands of jobs will be affected by the closure of industrial sites, stressing that the government is struggling to find private buyers and, if necessary, to provide the best possible support for the workers and the revitalisation of the sites. He also called for a European rescue plan for the sector, saying he would work to formulate policy proposals at EU level in the coming weeks.
Michelin’s announcement came just weeks after unions at Europe’s largest carmaker Volkswagen warned of planned plant closures.
