French car maker Renault has announced that it intends to cut about 15,000 jobs worldwide, including 4,600 in France, as part of a plan to cut costs of two billion euros over three years.
The French Press Agency quoted informed sources as saying that the company explained to the unions the plan that is to be announced, adding that the company hopes to cancel the jobs without the need for layoffs, but through voluntary departure, internal formation procedures and retraining of employees.
With the implementation of the plan, the company's annual production capacity will decrease globally from four million vehicles currently to about 3.3 million.
The auto industry is facing an existential crisis due to the Covid 19 pandemic, which has caused sales to drop as governments have forced citizens to stay at home to slow the spread of the virus.
Renault is in talks with the French government to obtain a subsidized loan of five billion euros, but the government has made this conditional on guarantees for workers and keeping production in the country.