December 9, 2021

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Renault cuts 15,000 jobs in significant restructuring

Renault cuts 15,000 jobs in significant restructuring
Image copyright Getty Images Image caption Employees of French carmaker Renault gather near one of its Paris sites to protest Renault is cutting 15,000 jobs worldwide as part of a €2bn (£1.8bn) cost-cutting plan after seeing sales plunge because of the virus pandemic."This plan is essential," said interim boss Clotilde Delbos, who announced a bigger…

Employees of French carmaker Renault gather near one of its Paris sites to protest

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Getty Images

Image caption

Staff members of French carmaker Renault gather near among its Paris websites to protest.

Some 4,600 tasks will go in France, and Renault has actually stated 6 plants are under evaluation for possible cuts and closure.

Renault, 15%owned by the French state and which is in talks with the federal government about an EUR8bn loan, has actually begun settlements with unions about which factories could shut.

Cost-cutting measures announced by both Renault and Nissan mark a departure from the enthusiastic expansion plan designed by now-ousted leader of the alliance, Carlos Ghosn.

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Reuters

Image caption

Ex-boss Carlos Ghosn left from Japan to Lebanon in December.

Renault’s interim president Ms Delbos stated during a press conference on Friday: “We have to change our frame of mind.

” We’re not looking to be on top of the world, what we want is a sustainable and lucrative company.”

Renault, which declares more than 4%of the international automobile market, stated its plans would impact about 10%of its 179,000- strong global workforce and cost as much as EUR1.2 bn (₤ 1.1 bn).

Ms Delbos added that Renault would review each region in order to decide where task cuts will fall. “This will assist us return to our ideal size,” she said.

Falling sales

Both Nissan and Renault were already facing falling sales prior to the Covid-19 outbreak aggravated trading.

Renault’s sales were down 3%in 2015 and the variety of cars sold in the first three months of 2020 fell by 25%, prior to dropping further in April.

The having a hard time company is presently in talks with the French government over a EUR5bn emergency loan package.

The French government has actually likewise vowed EUR8bn in larger rescue funds targeted at shoring up the nation’s car market. In exchange, President Emmanuel Macron had actually stated Renault needs to keep workers and production in the country.

And there’s a geographical split: Renault focusing on Europe and Russia, Nissan on China, Japan and the US, and Mitsubishi on South East Asia.

And it was telling that Renault did not state which French websites would shut.

That might discuss why Renault today played down reports it could put some production into Nissan’s UK plant at Sunderland.

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