Economy Automobiles

Renault announces 15,000 job losses worldwide, 4600 in France

Job losses are on the cards at this DIeppe site where the Renault Alpine is made.
Job losses are on the cards at this DIeppe site where the Renault Alpine is made. CHARLY TRIBALLEAU / AFP

The car manufacturer Renault has announced nearly 15,000 job losses worldwide, including 4,600 in France.

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The decision is part of a two billion euro cost-cutting plan that will stretch over 3 years.

The company’s CEO, Clotilde Delbos, said in a statement that the plan was “essential”, after the company reported in February its first losses in ten years.

Since then sales in cars worldwide have plunged in the face of the Covid-19 pandemic and lockdowns.

The company will offer voluntary redundancy packages and also expects to redeploy some employees in different jobs within the company.

No compulsory redundancies have been announced.

The 4 French sites affected are in Caudon in Brittany, Choisy-le-Roi near Paris and Dieppe and Maubeuge in Northern France.

Macron wants guarantees

The French state is the principal shareholder in Renault, with a 15% capital stake. Amid the rumours of impending job losses, President Macron called on Tuesday for guarantees for the future of the workers. He suggested that a promised 5 billion euro state-backed loan for the company would not be signed off until next week and would depend on decisions made over redundancies.

On Tuesday Macron unveiled an 8 billion euro rescue package for the auto industry.

Delbos said the Renault would announce its new strategic plan once Luca de Meo is in place as the new Director General of the company.

She confirmed the company’s intention to remain in the Formula 1 business but said there would be cost cutting in general marketing and engineering research.

 

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