Layoff News: Carmaker Renault plans to cut 3,000 jobs through voluntary redundancy offer, says report

French car manufacturer Renault is reported to leave 3,000 employees around the world in support of a voluntary surplus program – an offer in which personnel can choose to leave the company for a financial package rather than directly dismissed.

According to the French Bulletin, the final decision about Lay Off is expected to be made by the end of the year L’orum.

Which job roles will be affected?

Business deductions are part of a internal cost saving attempt called “arrow, in which Renault aims to reduce the labor force by 15 percent in support services such as human resources, finance and marketing.

This goal is expected to result in approximately 3,000 business deductions in the Paris suburb of Boulogne-Billancourt and in other places around the world.

Although Renault has confirmed that he is thinking about cost cuts, he stated that no final decision has been made from now on, and therefore could not confirm any official figure, Reuters notified.

“Considering the uncertainties in the automotive market and the extremely competitive environment in the automotive market, we confirm that we are thinking about ways to simplify our operations, accelerate execution and optimize our fixed costs.” He said. Reuters.

At the end of 2024, Renault employed 98,636 staff worldwide.

Renault’s financial performance

This development is followed by the July financial report, which declares a clear loss of 11.2 billion euros ($ 13 billion) for the first half of the year, including Renault’s common Nissan, including 9.3 billion euros in Nissan.

Except for writing, the company’s net income has fallen to 461 million euros and less than one third of the profit reported the previous year. This decrease was attributed to a weaker minibus market, costs related to electric vehicles, and increasing commercial pressures caused by an increasingly competitive environment.

Analysts emphasized the next critical task for the new CEO Francois Provost, who was appointed in July after Luca de Meo went to Gucci-Lord Kering. Provost was assigned to restore margins, to secure Renault’s credit rating back to the investment rating, and to find ways to deal with the influence of intensive competition from the US tariffs of the US tariffs and especially Chinese car manufacturers.