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Renault to eliminate 7,500 jobs in France by 2016

 Renault to eliminate 7,500 jobs in France by 2016
Renault Captur production version

GM, PSA and Ford also restructuring in Europe

Renault has announced plans to cut 7,500 jobs in France until 2016 as a move to break even in its homeland.

They estimate 75 percent of the cuts will be done through a normal staff turnover, according to a company's spokesman. At the 2013 Detroit Auto Show, Renault's CEO Carlos Ghosn said they won't close any plants in France.

These measures are aimed at lowering the firm's fixed costs by 396M EUR (528M USD) and the job cuts could rise to 8,200, representing 15 percent of Renault's French staff. This figure excludes any new hires that will be done over the next four years.

Because of the decreasing demand in Europe, automakers such as General Motors, Ford and PSA are all performing layoffs and closing assembly plants. GM is closing a plant in Bochum, Germany which threatens 3,100 jobs. PSA is cutting 11,200 jobs in France, representing 17 percent of its workforce. They are also closing one of their factories located on the outskirts of Paris. Lastly, Ford will eliminate 5,700 jobs and close three factories in Europe.

Source: Renault via europe.autonews.com

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Comments (1)

 haji haji
Annual cost cutting strategy by Ghosn. How hard could it be?
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January 17, 2013 3:37 pm