French automaker Renault will cut its global engineering staff between 15 per cent and 20 per cent over the next two years, the company said as it seeks to become more agile in the face of rising competition from low-cost Chinese rivals.
According to Reuters, the workforce reduction could impact up to 2,400 employees, based on Renault’s current engineering headcount of around 11,000 to 12,000. The company had 100,541 employees in total at the end of last year.
Renault, like other legacy automakers, is facing mounting pressure from a growing wave of Chinese carmakers expanding into key global markets. Chinese brands have gained traction due to their cost competitiveness and faster product development cycles.
Renault CEO François Provost has previously said the group needs to adopt methods used by Chinese automakers to remain competitive.
The automaker has already shortened development timelines for its new Twingo to 21 months following a partnership with Chinese engineers at its research and development centre in China.
The engineering job cuts form part of Provost’s broader transformation strategy unveiled last month, aimed at improving efficiency and accelerating product development.
The staff reduction plan was earlier reported by French regional newspaper Ouest-France.
In India, Renault is simultaneously sharpening its growth focus under its futuREady India plan, positioning the country as a key pillar of its global value chain. The company has said it aims to make India one of Renault’s top three global markets by 2030, expand its portfolio to seven multi-energy models, and build an export hub targeting €2 billion in annual exports from vehicles, R&D and components by the end of the decade.
