Renault Weighs 3,000 Job Cuts Worldwide Amid Market Pressure and Rising Competition

French vehicle maker Renault is pondering the layoffs of employees. News portal L'Informé reports that the company may slash between 3,000 jobs worldwide. This move would lead to around 15 percent cuts across support functions like human resources, finance, and marketing.

In a statement to AFP on Friday, the company explained that no final decisions have been reached and no numbers can be confirmed at this point in time. Renault further explained that it is examining the means of simplifying operations, accelerating implementation, and maximizing fixed costs.

According to media reports, Renault has primarily avoided US tariffs by not selling cars in the US market, but its impact has been felt indirectly. The pressure of US trade barriers on European competitors has accelerated Renault's efforts to sell domestically, further pressuring the French company. Renault also faces stiff competition from Chinese companies, particularly in electric and hybrid vehicles.

While Renault sells over 70% of its cars in Europe, growth there is slowing. Expanding into emerging markets has become essential for the company. To this end, Renault has already announced plans to invest 3 billion euros (approximately $3.4 billion) to launch eight new models for non-European markets by 2027.