French automaker Renault has announced that it will lay off 15,000 employees worldwide for an estimated €2 billion in savings, and 4,600 of the employees to be laid off are from France.
It is stated that the rest will be from those working in the production centers of the company in other countries. Renault has nearly 180,000 employees in 39 countries.
“This project, in terms of uncertainty and confusion, is vital for a sound and sustainable performance”, Renault interim CEO Clotilde Delbos said in his statement. “The planned changes are essential for securing the company’s sustainability and long-term development”, said Jean-Dominique Senard, chairman of the company.
Renault recorded a net loss of €141 million this year. The company aims to save approximately €2 billion in the next three years by laying off employees. The statement also noted that Renault’s four production centers in France will either be closed or restructured.
It is also noted that the factory in Flins, northwest of Paris, will also end the production of Zoe electric hatchback cars by 2024.
According to the plan, Renault’s production capacity, which is 4 million vehicles per year, will be reduced to 3 million in the next four years. Renault’s biggest partner is the French government, with a 15 percent share. The government had guaranteed the company €5 billion.
The coronavirus crisis has compounded the company’s problems, accentuating a slump in demand that was already hurting sales.
The overall cuts would affect just under 10% of Renault’s 180,000 global workforces. The firm has around 48,500 staff in France.