Michelin is considering reducing as many as 1,500 roles in France over the next three years through a voluntary scheme as it seeks to lower costs.

In a statement, the French tyre manufacturer said around two-thirds of the affected positions would come from support functions, while the remaining third would be in industrial activities.

The group said it has notified employee representatives and union bodies about the proposed plan.

“In a global environment marked by shrewd international competition and heightened macroeconomic and geopolitical tensions, the Michelin Group is pursuing efforts to sustainably improve its performance,” the company said in a statement.

Michelin said the French operating environment is also affected by “strong economic and regulatory constraints: high production costs”, particularly linked to labour and energy expenses.

“This staffing reduction project in France is aimed at optimising a cost structure that is too high today, supporting métier changes in the workplace and simplifying the company’s functioning modes,” the statement added.

As part of the process, Michelin said it will negotiate an agreement covering employment and career path management. This would be accompanied by external mobility measures through annual collective mutual termination agreements.

The company said the proposal does not alter France’s strategic importance within the group.

Michelin employs close to 17,000 people in France and said it intends to keep hiring in the country.

France is home to Michelin’s global headquarters, its worldwide research and development centre, and 13 manufacturing sites.

The company also said it has invested nearly €4bn ($4.66bn) in France over the past ten years.