Michelin confirned today that it would cut 1,093 jobs on a voluntary basis as part of a restructuring of its facilities as it battles falling demand from carmakers.

But the company said that it would also be investing over EUR100m (US$139m) at its R&D centre at its headquarters in Clermont-Ferrand, central France, and hire about 500 people a year there for the next three years.

Michelin is expected to announce other measures to counter the global downturn in demand next week.