Bad news for employees of this global car making company as it may cut 3,000 jobs worldwide due to…not Toyota, Volkswagen Group, BYD, Hyundai
The French multinational automobile manufacturer is reportedly planning to reduce its workforce by as many as 3,000 employees across the globe.
Renault SA layoff update: In a significant update for thousands of employees, French carmaker Renault SA is reportedly thinking about reducing its workforce by as many as 3,000 employees across the globe, as part of a cost-cutting strategy. According to French news site l’Informe, quoted by The Economic Times, the company plans to cut the workforce by the end of the year. Here are all the details you need to know about the workforce reduction update from French carmaker Renault SA.
Notably, Renault SA is a French multinational automobile manufacturer. Headquartered in Boulogne-Billancourt, the French company focuses on designing, manufacturing, and selling passenger cars, light commercial vehicles, and electric vehicles under brands like Renault and Dacia.
What is the cost-cutting plan of ‘Arrow’?
As per media reports, the plan named Arrow, targets support roles including human resources, finance, and marketing. If implemented, about 15% of staff in these departments could be affected, potentially impacting the company’s headquarters near Paris and other sites worldwide.
The l’Informe report also says that a final decision could be announced by the end of the year. Renault has confirmed it is exploring cost-saving measures but said no decision has been made yet, mentioned the report.
Why is Renault SA facing pressure?
It should be noted that the global car industry has been facing strong headwinds after the US imposition of tariff on various countries including India(BHARAT) and China and Renault is no exception. Although Renault SA isn’t directly affected by US tariffs as it doesn’t sell cars in the US, it has suffered indirectly.
Has the US tariffs impacted Renault SA?
One more important fact which should be noted is that the European competitors of Renault SA are facing trade restrictions. Therefore, the rival companies are now focusing more on the French domestic market, further increasing pressure on Renault. In addition to this, it should be noted that competition from Chinese carmakers has also intensified, especially in the electric and hybrid vehicle sector, which is becoming increasingly crowded and price-sensitive.
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