Recent News: Car manufacturer Renault plans to cut 3000 posts by voluntary discharge offer, the report says

French car manufacturer Renault is reportedly planning to make 3,000 employees worldwide, mainly in support roles through a voluntary discharge program – an offer where staff can choose to leave the company in exchange for a financial package, instead of being discharged directly. The final decision on the dismissal is expected to be made by the end of the year, reports the French Newsletter L’Anutte. What work roles will be affected? The cut from the work is part of an internal cost -saving initiative called “Arrow”, including Renault intends to reduce its workforce in support services such as human resources, finance and marketing by 15 percent. This target is expected to lead to about 3000 cuts in the car manufacturer in the Paris suburb of Boulogne-Billancourt and other places worldwide. Although Renault confirmed that it was considering the cost cut, but said that no fixed decisions had been made from now on, and that it could therefore not confirm official figures, Reuters reported. “Given the uncertainties in the car market and the extremely competitive environment, we confirm that we are considering simplifying our operations, speeding up the execution and optimizing our fixed costs,” Renault spokesman told Reuters. At the end of 2024, Renault employed 98,636 staff members worldwide. Renault’s financial performance This development follows Renault’s July financial report, which reported a net loss of 11.2 billion euros ($ 13 billion) for the first half of the year, including a 9.3 billion euro defense on partner Nissan. The company’s net revenue has dropped to 461 million euros, less than a third of the profits reported in a year earlier. This decline is attributed to a weaker market market, expenses associated with electric vehicles and rising commercial pressure arising from an increasingly competitive environment. Analysts highlighted the critical task ahead of new CEO Francois Provost, who was appointed in July, after Luca de Meo left for the Gucci owner. Provost has the task of repairing margins, Renault’s credit rating returns to the investment grade, and finds ways for the relatively small car manufacturer to deal with the impact of US rates and intense competition, especially of Chinese car manufacturers.