Michelin axes UK service centre and 200 jobs

By James Chapelard

Manchester, UK -- Michelin UK has closed its Manchester shared services operation with the loss of 200 jobs. The French tyre manufacturer outsourced its European financial shared service centre to Logica, the London-quoted IT consultancy, which switched the work to Barcelona and the Philippines from the previous base at Birley Fields in Hulme.

Michelin confirmed 150 people had been made redundant with a further 40 taking other jobs within the group outside of Manchester.

The operation in Manchester handled credit control, accounting services and invoices for 12 European countries and Manchester's inward investment agency Midas, described its arrival in 2003 as “a real coup”. The closure, which took effect last month, was not announced outside the company.

A Michelin spokesman said: “It's regrettable that we have taken this decision but it can be understood that other opportunities arose. It was a group decision rather than a Michelin UK decision.”

The spokesman said staff had been given redundancy packages above minimum statutory requirements and were being helped finding alternative jobs.

From Crain's Manchester Business (A Crain publication)