The proposal presented to trade unions included measures aimed at providing support for individuals facing potential layoffs.
According to statements from the company’s trade unions, Valeo, a France-based automotive supplier, is set to reduce its white-collar workforce by approximately 1,150 employees globally as it consolidates its hybrid and electric vehicle (EV) units. As reported by AFP, the proposed plan, presented to the trade unions, includes measures aimed at providing support for individuals who may be affected by the impending layoffs.
A spokesperson for the company expressed the goal of enhancing competitiveness through the establishment of a more agile, coherent, and comprehensive organizational structure. The restructuring will eliminate around 735 jobs, with 235 positions affected in France, according to AFP. Currently, Valeo employs 109,900 individuals worldwide.
The FO trade union highlighted that these job cuts compound the challenges posed by earlier announcements of layoffs at a transmission plant in France and the relocation of certain production activities to Turkey, contributing to increased uncertainty about the company’s future, as reported by AFP.
It’s worth noting that the French government, holding a 7.3% stake in Valeo through two state-owned investment banks, stands as the company’s largest shareholder. The CEO of Valeo had previously hinted at the significance of cost-cutting measures in 2024, citing the sluggishness of the automotive market, according to information provided by AFP.
Valeo has previously collaborated with Mahindra to provide electric powertrains and onboard chargers in India. Valeo announced plans to set up production near Mahindra’s Pune plant in Maharashtra, India, to localize the electric powertrain manufacturing.