Annual Production of 4 Million Units Expected to Decrease by 3.3 Million Units in 4 Years
[Asia Economy Reporter Yuri Kim] French automobile company Renault announced on the 29th (local time) that it will cut 15,000 jobs worldwide, including 4,600 jobs in France, to reduce costs.
According to Bloomberg and others, Clotilde Delbos, interim CEO of Renault, announced a cost reduction plan worth 2 billion euros (about 2.7 trillion KRW) over the next three years in a statement on the same day. The layoff plan was also included. CEO Delbos described the layoff plan as "an essential measure to ensure solid and sustainable performance in uncertain and difficult circumstances."
Renault stated that it may close or partially restructure four of its six production facilities in France. Renault will halt the expansion of production facilities in Morocco and Romania and will also reconsider its project in Russia.
Renault expects that annual vehicle production will decrease from the current 4 million units to 3.3 million units in four years through layoffs and plant closures. Jean-Dominique Senard, chairman of the Renault Group board, also stated in a statement that this is a "fundamental measure to ensure Renault's sustainability."
Renault plans to officially negotiate layoffs with unions and employee councils starting next month.
Renault Group, which had been struggling after the scandal that led to the fall of former chairman Carlos Ghosn, faced worsening management difficulties compounded by the COVID-19 pandemic. Renault employs 180,000 people in 39 countries worldwide.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
