Renault plans to remove 800 engineering jobs in France by the end of 2027 as it reshapes its operations to rein in costs and strengthen its position against rising competition from Chinese carmakers.
The planned cuts form part of a broader programme, announced in mid-April, to reduce the group’s total engineering workforce by between 15% and 20% over the same timeframe, chief technology officer Philippe Brunet told Reuters.
Renault has about 5,500 engineers in France, representing roughly half of its worldwide engineering staff.
As part of the same plan, the company intends to retrain 2,500 employees and recruit between 150 and 200 people, focusing those hires on electrification, software and AI.
The carmaker is seeking approval from unions in July, with implementation of the plan due to start in September.
Brunet said the fast expansion of Chinese manufacturers in Europe was the main reason behind the changes. Their share of the European market has risen more than threefold in the past two years, supported by technologically advanced vehicles sold at competitive prices.
“All other manufacturers are suffering, the Koreans, the Japanese in Europe, or other Europeans, including us. We must be able to compete against this,” he said.
In addition to reducing roles, Renault is revising its research and development operations to shorten vehicle development times.
Chinese competitors have reduced development cycles to around two years, compared with the more established industry norm of four to five years.
Renault also plans to streamline project management, remove some process stages and reduce time spent in meetings by 20% to narrow that difference.
Porsche, which is facing a sustained slowdown, is also examining ways to speed up cost-cutting and revise its long-term strategy.
Mercedes-Benz is preparing to begin formal discussions with unions on measures aimed at reducing costs and improving competitiveness, while also widening its use of AI to raise productivity.
Just Auto has contacted Renault for further information on this report.
