The French Carmaker company Renault has revealed the plan to slash 15,000 jobs worldwide as part of the plan after seeing sales plunge because of the global pandemic.
Media reported that Some 4,600 jobs will go in France, and Renault has said six plants are under review for possible cuts and closure.
Ms. Clotilde Delbos, Boss of the company terms the plan as essential. Renault, 15% owned by the French state and which is in talks with the government about an €8bn loan, has begun negotiations with unions about which factories could shut.
The company is cutting costs by slashing the number of subcontractors in areas such as engineering, decreasing the number of elements it uses, freezing extension plans in Romania and Morocco and contracting gearbox manufacturing worldwide.
The French firm intends to trim its global production capacity to 3.3 million vehicles in 2024 from 4 million now, concentrating on areas like small vans or electric cars.
“We’re not looking to be on top of the world, what we want is a sustainable and profitable company.”
Renault, which maintains more than 4% of the global car market, said its programs would affect about 10% of its 179,000-strong global workforce and cost up to €1.2bn (£1.1bn).
Ms. Delbos added that Renault would review each region in order to decide where job cuts will fall. “This will help us come back to our ideal size,” she said.n
Earlier Nissan said it would shut its factory in Barcelona with the loss of about 2,800 jobs in a bid to cut costs, prompting protests at the Spanish plant.
Cost-cutting proposals announced by both Renault and Nissan mark a departure from the enthusiastic expansion plan devised by the now-ousted leader of the alliance, Carlos Ghosn.