LONDON (ShareCast) - (Sharecast News) - Renault announced on Friday that it would be slashing 14,600 jobs as part of a restructuring of its factories in France to reduce costs.
The carmaker said that the restructuring measures, including the job cuts, employment transfers and potential factory closures would affect just under 10% of its global workforce, and would cost €1.2bn.

The plan was brought on by a slump in the demand that has been exacerbated by the coronavirus crisis.

Renault is aiming to make €2bn in savings over the next three years as it shrinks production, focusing on certain car models.

Production will be reduced to 3.3m vehicles in 2024, down from 4m today.

Some plants like the one in Flins, where it makes its electric Zoe models, could cease to assemble cars and center on recycling activities, instead.

The group has not made final decisions about the future of six sites in France, including at Flins and Dieppe, as it faces both political and union opposition.

According to Reuters, French unions fear the closures of 4 factories.

Interim Chief Executive Clotilde Delbos told a conference call, the company was "coming back to its bases".

Renault chairman Jean-Dominique Senard said: "I have confidence in our assets, our values and the direction of the company to succeed with the envisaged transformation and to return our group to its full value by deploying this plan."

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