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Tyre giant Goodyear is to cut 500 jobs from its French plants after unions rejected plans to restructure the factories.

Goodyear says production will be reduced at its two plants at Amiens in northern France, where it employs 2,700 people, because the plants' costs are uncompetitive.

The group employs 3,800 people in France as a whole. Production of some tyre types will be transferred to other Goodyear factories in Europe and elsewhere, the group said.

In October 2007 employees in France rejected company plans to modernise and renovate the plants.

European vice president of manufacturing Serge Lussier said: "We have communicated extensively with the trade unions, explaining the need for major changes. These changes would increase our competitiveness. Unfortunately they have rejected the plan. Therefore we have no choice but to reduce our costs as the plants are currently uncompetitive."