UAE24x7
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021
No Result
View All Result
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021
No Result
View All Result
UAE24x7
No Result
View All Result
Home Business

Renault announces major reconstruction, 15000 to lose jobs

Shehin by Shehin
June 4, 2020
in Business, World, World News
0
Renault announces major reconstruction, 15000 to lose jobs
Share on FacebookShare on Twitter

In a major reconstruction, Renault announced its cost-cutting plan on Friday which will cut nearly 15,000 jobs. This will include 4,600 at its core French operations and about 10,000 worldwide. This plan aims to regain its footing in the wake of plummeting car sales and the shift to electric vehicles.


“In a context of uncertainty and complexity, this project is vital to guarantee a solid and sustainable performance,” interim CEO Clotilde Delbos said in a statement.

The cost-cutting plan, which was unveiled to labor representatives, Thursday, aims to reduce overheads by two billion Euros ($2.2 billion) over the next three years.

Renault further added, “Our four production sites in France could be closed or restructured and the factory at Flins northwest of Paris will stop making the Zoe electric hatchback from 2024.”

An additional 10,000 jobs will be cut outside France, with expansion plans now halted in Morocco and Romania, and under review in Russia. Overall, Renault’s production capacity will shrink to 3.3 million vehicles over the next four years, from four million currently.

“We want to generate economies of scale to restore our overall profitability and ensure our development in France and internationally,” Delbos said.

Workers at Renault factory using face masks during the Covid-19 crisis.


Renault came into the coronavirus crisis in particularly bad shape: Its alliance with Nissan and Mitsubishi has struggled since the 2018 arrest of its longtime star CEO Carlos Ghosn. This exposed deep rifts in its alliance with the said companies.

After Ghosn’s ouster, his successor Thierry Bollore was forced out, in turn, a few months later, as former Michelin chief Jean-Dominique Senard was brought in to chart a new course for the carmaker and repair the fractured alliance.

“The planned changes are fundamental to ensure the sustainability of the company,” Senard said in a statement on Friday.

Though the company hired former Volkswagen executive Luca de Meo to take over as CEO, he will not be able to start his work until July because of a non-compete clause.

Last year, Renault recorded its first annual loss in a decade, at 141 million euros. The French government is its single biggest shareholder with a 15-per cent stake and has been in talks on a 5 billion-euro loan guarantee. Finance Minister Bruno Le Maire earlier this week that the group’s survival is at stake.

The company said, “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,” the statement said.

The group, which employs 180,000 workers worldwide, announced the suspension of planned capacity increase projects in Morocco and Romania.
The group is also considering “adaptation” of its production capacities in Russia and announced the halt of Renault-branded oil-powered car activities in China.

On Thursday, Nissan unveiled huge job cuts and the closure of its factory in Barcelona. The UK plant, in Sunderland, would remain open, the Japanese company said.

The company is slashing costs by cutting the number of subcontractors in areas such as engineering, reducing the number of components it uses, freezing expansion plans in Romania and Morocco and shrinking gearbox manufacturing worldwide.

Renault’s interim chief executive Ms. Delbos said during a press conference on Friday: “We have to change our mindset. We’re not looking to be on top of the world, what we want is a sustainable and profitable company.”

Renault, which claims more than 4% of the global car market, said its plans would affect about 10% of its 179,000-strong global workforce and cost up to €1.2bn (£1.1bn).

  • Trending
  • Comments
  • Latest
How to check UAE visa status & validity using only passport

How to check UAE visa status & validity using only passport

September 10, 2021
The most important advice that every tourist should take into account when visiting Dubai

The most important advice that every tourist should take into account when visiting Dubai

July 25, 2020
Procedures for Renewing the Driving License in Abu Dhabi [3 Simple Steps]

Procedures for Renewing the Driving License in Abu Dhabi [3 Simple Steps]

September 21, 2021
The Top & Most Popular Seafood Bucket Restaurants in Dubai for you [Never Miss]

The Top & Most Popular Seafood Bucket Restaurants in Dubai for you [Never Miss]

September 23, 2021
Is classroom education a distant dream now?

Is classroom education a distant dream now?

0
Is classroom education a distant dream now?

Asia’s Biggest Book Market Damaged Beyond Belief!

0

Is earth’s magnetic field weakening creating another nightmare on planet earth?

0

UK’s new twin Nuclear Power Plant is catastrophic: Environmentalists

0
5 Best UAE day trips to escape the city

5 Best UAE day trips to escape the city

September 28, 2022
UAE travellers alert: Passengers must declare cash and items worth more than Dh58,000 when visiting Saudi Arabia

UAE travellers alert: Passengers must declare cash and items worth more than Dh58,000 when visiting Saudi Arabia

September 27, 2022
Saudi Arabia plans to send a female astronaut to space in 2023

Saudi Arabia plans to send a female astronaut to space in 2023

September 23, 2022
Get your medical fitness results for visas in under 30 minutes

Get your medical fitness results for visas in under 30 minutes

September 23, 2022
UAE24x7

Menus

  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021

Recent News

5 Best UAE day trips to escape the city

5 Best UAE day trips to escape the city

September 28, 2022
UAE travellers alert: Passengers must declare cash and items worth more than Dh58,000 when visiting Saudi Arabia

UAE travellers alert: Passengers must declare cash and items worth more than Dh58,000 when visiting Saudi Arabia

September 27, 2022
No Result
View All Result
  • UAE
  • News
  • Entertainment
  • Sports
  • Business
  • Lifestyle
  • Food & Drink
  • Expo 2021

© 2021 UAE24X7