Valeo, a French automotive parts supplier, is set to lay off 868 employees across eight factories in France. This decision impacts 6.4% of its 13,500 French workforce. Of the total layoffs, 694 will be forced, while 174 will be voluntary. The company emphasizes that the cuts will primarily affect management roles, sparing production-related positions. Although specific details and timing are yet to be confirmed, Valeo plans to offer alternative roles within other French locations for those affected.
The layoffs are driven by declining automotive demand, lower-than-expected electric vehicle adoption, and intensified industry competition. These factors have led several European car manufacturers to lower their forecasts and reduce production, impacting parts suppliers like Valeo. Additionally, Valeo plans to cut around 200 jobs in Poland, Germany, and the Czech Republic.
