French automaker Renault is preparing to cut around 3,000 jobs worldwide as part of its new cost-reduction strategy, named Project Arrow, according to reports from French newspaper L’Informe.
Who Will Be Affected?
The layoffs are expected to focus on administrative divisions, including:
| Division Impacted | Examples of Positions |
|---|---|
| Human Resources | HR managers, recruiters |
| Finance | Analysts, controllers, accountants |
| Marketing | Brand strategists, digital marketing teams |
Most of the cuts would impact Renault’s headquarters in Boulogne-Billancourt, near Paris, as well as international units.
The company confirmed it is studying ways to simplify operations and cut fixed costs, though it emphasized that no final decision has yet been made.
FREE: Quickly identify and understand problems with your vehicle 🚘
CLICK HERE“Given the uncertainties in the automotive market and the extremely competitive environment, we are studying ways to accelerate execution and reduce fixed expenses,” Renault said in a statement.
Why the Pressure?
Renault ended 2024 with around 98,600 employees but is now under intense pressure after a net loss of €11.2 billion ($11.8 billion) in the first half of this year.
A significant portion of this loss came from a €9.3 billion ($9.8 billion) devaluation related to its Japanese partner, Nissan.
This sharp downturn has increased scrutiny on Renault’s leadership, especially as Chinese automakers rapidly expand in the electric vehicle (EV) market, intensifying competition.
Leadership Under Scrutiny
The company’s new CEO, François Provost, who replaced Luca de Meo in July (after de Meo moved to the Kering Group), faces his first major challenge with Project Arrow. His key goals include:
- Restoring margins
- Improving Renault’s credit rating
- Adapting production to the energy transition
- Navigating tariffs imposed by the United States
The auto industry’s landscape is becoming harsher, with shrinking margins and fierce global competition, especially in the electric car sector. Renault’s restructuring will be a test of whether it can remain competitive in this shifting market.
✅ Key Takeaway: Renault is preparing a major restructuring with up to 3,000 job cuts, aiming to recover from multi-billion-dollar losses and reposition itself in the rapidly evolving electric car market.
Leave a Reply