Renault to cut up to 20% of engineers as competition from China heats

Renault plans significant job cuts in its engineering department. The French automaker will reduce its global engineering staff by up to 20 percent in the next two years. This move aims to increase agility and compete effectively with fast-develop...

Agencies
French automaker Renault ​SA will cut its global engineering staff by between 15% and 20% over the next two years, a ‌spokeswoman ⁠said on ⁠Tuesday, in a bid to become more agile ​in the face of competition from low-cost Chinese rivals.

The ​job cuts would amount to up to 2,400 staff, based on a current engineering ​workforce of around 11,000 ⁠to 12,000 ‌people. Renault had 100,541 employees in ​total ​at the end of last ⁠year.

Renault, like all legacy automakers, is ​seeing a raft of Chinese brands entering ​its most important markets.


Chinese players are known for their low costs and faster development times. Renault CEO Francois Provost has said the group should mirror the ‌Chinese methods.

It has already cut the development time of its new ​Twingo to 21 ​months after ⁠partnering with Chinese engineers at its research and development centre in China.

The staff reduction is ​part of Provost's broader transformation strategy unveiled last month.
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The Renault engineering cuts were earlier reported by regional French newspaper Ouest-France.
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