Renault set to cut 15,000 jobs worldwide as part of major restructuring plans

Renault has announced that they are planning on cutting 15,000 jobs worldwide as part of a £1.8bn restructuring plan following the devastating impact of the COVID-19 pandemic on the automotive industry.

There are around 1,000 Renault employees across the UK.

The draft plan is based on the current efficiency of operations within Groupe Renault. By simplifying processes, reducing the diversity of components within vehicles, adjusting industrial capacities, and cutting jobs, Renault hopes to save the business from any further problems.

The planned changes will be implemented in consultation with the social partners and local authorities across the company’s operations across the world.

The difficulties encountered by the Group, the major crisis facing the automotive industry and the urgency of the ecological transition are all imperatives that are driving the company to accelerate its transformation.

Jean-Dominique Senard, Chairman of the Board of Directors of Renault said: “I have confidence in our assets, our values and in the management of the company to succeed with the envisaged transformation and to return our Group to its full value by deploying this plan. The planned changes are fundamental to ensure the sustainability of the company and its development over the long term.

“It is collectively and with the support of our Alliance partners that we will be able to achieve our objectives and make Groupe Renault a major player in the automotive industry in the years ahead. We are fully aware of our responsibility and the planned transformation can only be achieved with respect for all our Group’s stakeholders and through exemplary social dialogue.”

Industry reaction

Christian Stadler, Professor of Strategic Management at Warwick Business School and an expert in the automotive industry, said: “On one level, the jobs cuts at Renault are not surprising given the challenges facing the industry. Renault have been struggling for a while now and many companies that were in trouble before COVID-19 are going to find it even more difficult now. This could be a sign of things to come in the industry. Other car makers may well use this crisis as an excuse to make cuts they were considering anyway. Look at Nissan’s decision to close its plant in Barcelona.

“The more surprising aspect is the timing of this announcement, just days after the French government unveiled plans for £4.5 billion of support for Renault. That will almost certainly have been on the condition that it protected jobs in France.There are several ways this could be interpreted. It may be that both Renault and the government accepted there would be some job cuts, but those are now smaller than they would have been. Alternatively the French government may be feeling very annoyed right now. The third interpretation is the most intriguing. This announcement could be Renault playing for even more government money in order to save more jobs. Only time will tell.”