International auto giant Renault has announced layoffs during the crisis that engulfed avtoural the pandemic coronavirus. This was reported on the website of the company.
In total the French company plans within three years to reduce nearly 15 thousand employees, including 4.6 thousand in the homeland in France. The company is not going to lay off employees involuntarily, she plans to reduce staff by sending employees on retirement, voluntary redundancies and retraining of employees.
In addition to the cuts, Renault intends to optimize costs, reducing production by almost 20 percent. So, the group has abandoned plans to increase production in Morocco and Romania. The company is also considering the possibility to adjust production capacity in Russia.
Layoffs and reduced production volumes are part of Renault’s plan for saving two billion euros in the next three years, restore competitiveness and ensure long-term development. Implementation of the plan will cost the company 1.2 billion. In total the company employs 180 thousand people worldwide.
The automotive industry has faced the strongest decline in demand due to the pandemic coronavirus. According to the European Association of automobile manufacturers, in January-April 2020 the demand for cars in the EU fell by 38.5 percent, a record. The strongest drop of almost 50 percent recorded in three key market countries — Italy, Spain and France. In Germany, the demand has fallen by 30 percent.
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