The credit crunch is squeezing the tyre industry again. In a cost-cutting exercise, French tyre giant Michelin has closed its Manchester-based service centre, with the loss of 200 jobs. Since July Michelin has decided to outsource the centre’s work to IT consultancy Logica. The work will now be carried out in Spain and the Philippines.
A representative of Michelin UK said that he regretted the decision, but stressed that the company had to explore all options. It appears that the decision to close the Manchester facility was taken at group level, rather than by Michelin UK.
The 200 employees are being offered redundancy packages that exceed the minimum statuary requirements, and they are being given help to find alternative employment.