French car manufacturer Renault has announced a significant raft of job losses, aiming to make savings of €2bn over the next three years.

The huge restructure is expected to affect 10 per cent of its global workforce and will include up to 14,600 jobs cuts, employment transfers and potential factory closures.

It is thought that the company had already been experiencing a slump in demand prior to the Covid-19 crisis which has put additional pressures on the motoring industry. Renault produce 4m vehicles currently but are looking to step back to 3.3m vehicles by 2024 and will now focus on a smaller range of models.

Though no decisions have been made on factory closures, French unions are fearful of four factories closing.

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.”

Renault’s plan is being implemented immediately and will cost in the region of €1.2bn according to the company’s Acting Chief Executive Officer, Clotilde Delbos, who on a call with analysts said: ““We have spent and invested too much and will now come back to our base. We’re facing reality, not looking to be on top of the world.”

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