Renault prepares for 15,000 job cuts

Renault carsImage copyright Getty Images

Struggling French carmaker Renault is claimed to be planning 15,000 job cuts world wide because it tries to comprise losses amid the pandemic.

The move comes because the virus deepens the challenges going through the agency, which noticed its first annual loss in a decade final yr.

The firm, which has pledged to chop prices by €2bn (£1.8bn), is predicted to debate the plan on Friday.

Almost one third of the reductions are anticipated to happen in France.

Speaking on French tv, a French labour chief briefed on the plans mentioned most of the cuts in France would come by way of voluntary layoffs or retirement.

Renault, which claims greater than 4% of the worldwide market, employs greater than 179,000 individuals in 39 international locations.

Even earlier than the pandemic, the agency was in hassle, with gross sales down 3% final yr. It mentioned final month the variety of autos offered dropped by 25% within the first three months of the yr and plunged much more dramatically in April.

The agency is at the moment in talks with the French authorities, which holds a 15% stake within the firm, over a €5bn emergency mortgage bundle.

The French authorities has additionally pledged €8bn in wider rescue funds geared toward shoring up the nation’s automobile trade.

In change President Emmanuel Macron has mentioned the agency ought to hold employees and manufacturing within the nation.