Renault to cut 15,000 jobs in Covid-19 restructuring plan
Renault today unveiled plans to slash roughly 15,000 jobs worldwide as part of a drastic restructuring plan aimed at counteracting a sharp slump in sales during the Covid-19 crisis.
The car manufacturer said it was launching talks with unions to restructure some of its plants in France and potentially close others in a bid to save €2bn (£1.8bn) over the next three years.
Renault said the restructuring, including the job cuts and employee transfers affecting almost 10 per cent of its global workforce, would cost €1.2bn.
The car brand, which is 15 per cent owned by the French state, plans to rein in production and concentrate on its most profitable models.
The firm said it aimed to reduce output from 4m to 3.3m vehicles by 2024, with a focus on models such as small vans and electric cars.
Renault said some factories, such as its hub in Flins near Paris, could stop car production altogether and be used instead for recycling activities.
In total six sites will be under review, while other cost-cutting measures include reducing the number of contractors and components the firm uses, shrinking gearbox manufacturing and scrapping expansion plans in some countries.
It comes after the so-called alliance of Renault, Nissan and Mitsubishi said they will deepen cooperation in technology and production in a bid to survive the coronavirus downturn.
Nissan yesterday announced almost 3,000 job cuts with plans to close its Barcelona production hub, though the firm said its Sunderland plant will remain open.
The French government has also announced an €8bn rescue package for the country’s ailing car industry.