EMCC European Monitoring Centre on Change

Renault

Company/Organisation:
Renault

Geographic Location

Country: World
Location of affected unit(s): France, Spain, Romania, Russia

Company

Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles
Number Employed: 180000

Employment Effects

Announcement Date: 28-05-2020
Planned Job Reductions min: 15000
Planned Job Reductions max: 15000
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2020
Foreseen End Date: 31-12-2023

Additional Information

The French carmaker, which is in financial difficulty, has announced it will cut around 15,000 jobs worldwide out of 180,000, including 4,600 job cuts in France out of 48,000 as part of a three-year savings plan designed to save more than €2 billion. The job reduction plan was presented on 29 May to the French trade unions. In France, Renault intends to rely on retraining measures, internal mobility and voluntary departures. Forced dismissals will be avoided. In total, the five-brand manufacturer (with Alpine, Dacia, Lada and Samsung Motors) plans to cut around 8% of its workforce worldwide. Internationally, Renault announced the suspension of planned capacity expansion projects in Morocco and Romania. It says it is studying the adaptation of production capacities in Russia and the rationalization of gearbox manufacturing worldwide. According to Renault, the reduction in industrial facilities should make it possible to reduce its fixed costs by €650 million per year. In addition, the manufacturer plans to cut engineering costs by €800 million, referring to optimizing the use of R&D centers abroad and subcontracting. Finally, savings of €700 million are expected in overheads, marketing and other support functions. Renault points out that the implementation of the plan will cost €1.2 billion, representing annual savings of around €2.15 billion on its fixed costs. A previous transnational roerganisation was recorded in the ERM Data in 2018, when Renault announced 5,000 job cuts on EU level.

Sources: