Vaelo to cut 1,000 jobs, close plants amid industry shift
The crisis in the automotive world 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 cutbacks.
Layoffs at Valeo. At the beginning 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, these words are becoming actions.
As reported by "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 within the automotive industry.
Among the affected plants are a research and development centre near Paris and a factory in the French region of Sarthe. Some employees from both facilities will be transferred to other company offices. However, the layoffs will not be limited to France.
About 200 positions will also be eliminated in the Czech Republic, Germany, and Poland. The layoffs mainly involve "white-collar" workers—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 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.
