French Automotive Group Renault Halts New Hiring Until Year-End

"Applies to All Departments, Brands, and Countries"
Financial Outlook Concerns... About 17 Trillion Won Net Loss in First Half

French automotive group Renault has announced that it will halt new hiring until the end of this year. This emergency measure was taken due to concerns over its financial outlook.

Renault Group logo. Photo by Renault

According to the French daily Lib?ration, Renault's management sent an email to managers on the 30th (local time), stating, "A group-wide hiring freeze will be implemented until December 31 of this year. This measure applies to all departments, brands, and countries."

The management emphasized, "Hiring will only be permitted in exceptional cases and must align with the company's most strategic priorities," adding, "This temporary measure is essential for the company to maintain flexibility and strengthen financial discipline during this critical period."

Renault, which employs 98,000 people worldwide, announced in mid-July that the group would reinforce its cost-cutting plan. This includes reductions in operating expenses, production costs, and research and development expenditures.

The group's decision to freeze hiring appears to be related to its investment losses in Japanese automotive group Nissan and a challenging market environment, which led to a net loss in the first half of the year. On July 31, Renault Group disclosed a net loss of 11.19 billion euros (approximately 17.8 trillion won) for the first half, explaining that 9.3 billion euros (14.8 trillion won) of this amount reflected investment losses related to its partner Nissan. Facing management difficulties, Nissan agreed last April to reduce its mutual cross-shareholding with Renault from 15% to 10%.