France‘s second leading carmaker Renault on Friday announced that it would cut 14,600 posts worldwide and reduce production capacity over the next three years in order to save 2 billion euros (2.22 billion U.S. dollars) and focus on profitable segments of activities.
The workforce adjustment project concerned 4,600 jobs in France and would be based on retraining measures, internal mobility and voluntary departures, said Renault in a statement.
Stretching over three years, the plan would enable the group to return to profitable and sustainable growth, strengthen the company’s resilience by focusing on cash flow generation, while keeping the customer at the centre of its priorities, it added.
As part of the restructuring scheme, Renault said it would reduce its global production capacity to 3.3 million vehicles in 2024 from the current 4 million by suspending capacity increase projects in Morocco and Romania and adjusting capacity in Russia.
In France, the group would be organized around strategic business areas with a promising future such as electric vehicles, light commercial vehicles (LCVs) and high value-added innovation.
“In a context of uncertainty and complexity, this project is vital to guarantee a solid and sustainable performance, with customer satisfaction as a priority,” said Clotilde Delbos, Renault interim chief executive officer.
“By capitalizing on our many assets such as the electric vehicle, by capitalizing on the resources and technologies of Groupe Renault and the Alliance, and by reducing the complexity of development and production of our vehicles, we want to generate economies of scale to restore our overall profitability and ensure our development in France and internationally,” she added. (1 euro = 1.11 U.S. dollar)