French people

Renault to cut fewer jobs than initially planned by 2024

The logo of automaker Renault is pictured at a dealership in Les Sorinières, near Nantes, France on September 9, 2021. REUTERS / Stephane Mahe / File Photo

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PARIS, December 6 (Reuters) – French carmaker Renault (RENA.PA) announced on Monday that it had downgraded its forecast for job cuts in engineering and support in France between 2022 and 2024 to 1,700, against 2,000 previously expected job cuts.

Renault, 15% owned by the French government, said in September it would start talks with unions over plans to cut up to 2,000 engineering and support jobs in France as it switches to electric vehicles and hiring for different positions. Read more

“Given the increase in the number of voluntary departures from the company (…) there has been a readjustment of the objectives of the 2022-2024 plan,” a Renault spokesperson told Reuters, confirming the figure. of 1,700 reported by Les Echos.

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These reductions are in addition to the 4,600 jobs that Renault announced in 2020 as part of a reduction in costs to stem losses.

Renault said last month it was close to meeting its target of cutting its fixed costs by € 2 billion ($ 2.3 billion) by the end of 2021, a year earlier than planned. The goal is to achieve 3 billion euros in cost reduction by 2025.

A union representative told Reuters that the new figure of job cuts put forward by Renault management in its 2022-2024 plan would be submitted by unions to their members in two weeks.

Renault spokesman said the 2022-2024 plan still aims to hire 2,500 new people in different positions.

($ 1 = 0.8852 euros)

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Reporting by Tassilo Hummel and Gilles Guillaume, Editing by Benoit Van Overstraeten

Our Standards: Thomson Reuters Trust Principles.


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