Renault Plans to Cut Up to 20% of Engineers

According to Bloomberg News, Renault Group plans to cut up to 20% of its engineering staff globally within the next two years. This move is part of the company's efforts to streamline operations and reduce costs amid increasing competition.

A media representative for the Renault Group confirmed on April 14 a Bloomberg News inquiry regarding layoff plans, stating that the company currently employs more than 11,000 engineers globally. The spokesperson added that specific layoff plans will be determined by Renault’s local management teams in each country.

Image source: Renault

Since taking office last July, CEO Francois Provost has been actively cutting costs to make Renault Group more agile. Like other European automakers, Renault faces intensifying competition in Europe from Chinese carmakers such as BYD, and its stock price has fallen 12% this year.

Relying on Chinese parts and its research and development center in Shanghai, Renault has developed the fully electric Twingo, priced below 20,000 euros (about $23,600), which will go on sale this year. Provost promised to apply the experience gained in China to the R&D center in France, especially the Technocentre campus near Paris.

Laurent Giblot, a representative of the CGT (Confédération Générale du Travail) union, said in an interview that as part of the Provost plan, hundreds of engineering and support jobs in France could be cut. He stated, "The dismantling of Renault's engineering department is deeply worrying, with the scale of the planned layoffs being enormous, which raises questions about how the group will be able to meet its plan to launch 36 models by 2030."