News of layoffs in the auto sector is once again making headlines. Major French carmaker Renault SA is preparing to cut the jobs of thousands of employees.
After IT giants like TCS and Microsoft, now the sound of layoffs is being heard in the automobile sector as well. Amidst the pace of electric vehicles, pressure of global recession and increasing competition, now the French car manufacturer Renault SA is preparing to cut down its employees on a large scale. According to the report of French news site l’Informe, the company is planning to eliminate around 3000 jobs across the world. If this step is taken, it will directly impact Renault’s support services like human resources, finance and marketing department.
Possibility of reduction in posts up to 15%
According to reports, Renault is considering plans to reduce approximately 15% of its support services positions. However, the company has not yet made any official announcements. Speaking to Agence France-Presse (AFP), Renault stated that no final decisions have been made and no numbers have been finalized. The company says it is exploring options to simplify its operations, increase work speed, and reduce fixed costs.
Away from the US market, still under pressure
It’s worth noting that Renault doesn’t sell its vehicles in the US, so the company is immune to direct US tariffs. However, it is still facing indirect pressure. Due to US trade barriers, European automakers are adopting aggressive strategies in Renault’s home market, Europe. This has increased pressure on Renault’s market share.
Tough competition from Chinese companies
Another major challenge for Renault is coming from Chinese auto companies. They are rapidly capturing the market in the electric and hybrid car segments. This has virtually stagnated Renault’s growth in stagnant markets like Europe. This is why the company is now focusing on emerging markets.
Planning to launch 8 new models by 2027
The company has already announced that it will invest approximately 3 billion euros (approximately ₹30,000 crore) in markets outside Europe by 2027. With this investment, Renault plans to launch eight new models to strengthen its presence in markets like Asia and Africa.
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