Auto giant Renault might slash 3,000 jobs worldwide
What's the story
Automotive giant Renault is contemplating a major restructuring plan that could see as many as 3,000 jobs cut globally, French news site l'Informe has reported. The move primarily targets support services such as human resources, finance, and marketing. The company has not yet confirmed the report but has acknowledged the need to simplify operations and optimize costs amid market uncertainties.
Company statement
What did Renault say?
Responding to the speculation, Renault said it had no number to communicate as no decision had been made. The company further clarified that it is looking at ways to simplify its operations, speed up execution and optimize fixed costs. This comes amid increasing competition from European rivals and Chinese electric vehicle manufacturers in the market.
Strategic shift
Renault plans to invest $3.4B for new models
Despite being mostly insulated from US tariffs due to its absence in the American car market, Renault has felt indirect impacts. European competitors are pushing harder into Renault's home region due to US trade barriers. To counter these challenges, the company plans to invest €3 billion ($3.4 billion) for eight new models in non-European markets by 2027.