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Renault Plans To Cut About 14,600 Jobs Worldwide

grouperenault may29 lt

Groupe Renault plans to cut about 14,600 jobs across the world and lower its production capacity.

The plan includes almost 4,600 jobs reduction in France, through voluntary retirement and retraining, the company said in a statement. More than 10,000 positions in the rest of the world will be eliminated.

The French carmaker said, "The difficulties encountered by the Group, the major crisis facing the automotive industry and the urgency of the ecological transition are all imperatives that are driving the company to accelerate its transformation."

The company plans to reduce its global production capacity to 3.3 million vehicles by 2024 from 4 million vehicles in 2019. It will also suspend planned capacity increase projects in Morocco and Romania in addition to suspending study of the adaptation of the Group's production capacities in Russia, and study of the rationalization of gearbox manufacturing worldwide.

Renault announced the transfer of its stake in Dongfeng Renault Automotive Company in China to Dongfeng Motor Corp. and the cessation of Renault branded passenger car combustion engine activities in the Chinese market.

Meanwhile, the company is currently in talks with the French government for a credit facility between 4 billion euros and 5 billion euros.

By taking various cost cutting measures, Renault intends to save more than 2 billion euros over three years, and expects the costs of implementation to be about 1.2 billion euros.

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