Renault is set to propose voluntary redundancies for around 3,000 employees in support functions, in a move to streamline operations, as reported by Reuters, citing L’Informe, a French newsletter.
The proposed job cuts form part of the French automaker’s broader cost-saving initiative, known as “Arrow”, which aims to reduce the workforce in non-production areas such as finance, marketing, and human resources by 15%.
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The job cuts are expected to impact personnel at Renault’s main office in the Parisian suburb of Boulogne-Billancourt and various other global sites.
According to a source quoted in the newsletter, a definitive resolution on the job reduction plan is anticipated by the end of 2025.
While Renault has acknowledged its consideration of cost reductions, the company has not confirmed any specific figures, stating that “no decisions have been made” yet.
As of the end of last year, Renault’s global staff count stood at 98,636.
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By GlobalDataThe company faced an €11.2bn ($13 bn) net loss in the first half of the year, which included a €9.3bn write-down linked to its association with Nissan.
When setting aside this write-down, Renault’s net income still saw a substantial decline to €461m, a fraction of the previous year’s figure, due to various challenges, including a sluggish van market, costs linked to electric vehicles, and increased competition.
A company’s spokesperson said: “Given the uncertainties in the automotive market and the extremely competitive environment, we confirm that we are considering ways to simplify our operations, speed up execution, and optimise our fixed costs.”
According to Reuters, the appointment of new chief executive officer Francois Provost in July has brought a renewed focus on enhancing profit margins, improving Renault’s credit rating to “investment-grade” status, and formulating strategies to navigate the challenges posed by US tariffs and the rise of Chinese automotive competitors.
For the first half of 2025, Renault Group reported an increase in its global sales, with a 1.3% rise compared to the same period in 2024, amounting to 1,169,773 vehicles sold.
In collaboration with its alliance partners Nissan and Mitsubishi Motors, Renault Group recently announced that it is entering a new phase focused on the development of electric vehicles and the pursuit of industrial synergies within Europe.
