Valeo announced on Wednesday its intention to cut around a thousand jobs in Europe over the next few months, mainly in France, two sources close to the matter told Reuters, as well as the closure of its La Suze-sur-Sarthe plant and the transfer of activity at its La Verrière R&D site (Yvelines).

As the latest example of the restructuring under way in the automotive sector as a result of the switch to electric vehicles and the slowdown in the market, the automotive supplier, which specializes in driving aids and hybridization systems, plans to cut 868 jobs in France - mainly through forced redundancies - and 150 jobs in three other European countries, Germany, Poland and the Czech Republic, the sources added.

Valeo declined to comment.

The decisions presented Wednesday to the European Group Works Council, which affect eight of Valeo's 37 production and R&D sites in France, are aimed at optimizing the industrial footprint in France in particular to adapt it to the current reduction in automobile production, the sources said.

Valeo currently employs around 14,000 people in France, its second largest country after China.

While the La Verrière R&D site will close, most of its employees - 365 out of 390 - will be offered positions at two other Valeo sites in the Paris region.

(Gilles Guillaume reports, edited by Blandine Hénault)

by Gilles Guillaume