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Hong Kong (CNN Business) - Renault will cut 14,600 jobs as part of a major overhaul designed to cut costs and help the French automaker survive the coronavirus pandemic.
Some 4,600 jobs will be cut in France, with 10,000 more in other markets.
READ: Nissan closes its Barcelona plant and will reduce its production capacity by 20%
The company announced on Friday that it will cut costs by more than 2 billion euros ($ 2.2 billion) in the next 3 years. It also plans to reduce the number of cars it makes each year from 4 million to 3.3 million by 2024, and will stop selling Renault-brand vehicles in China.
Renault is part of the world's largest automobile manufacturing alliance, along with Nissan and Mitsubishi. Earlier this week, the companies announced that they would make fewer models, share production facilities, and focus on each automaker's existing geographic and technological strengths as they try to cut costs amid the coronavirus pandemic.
Renault said changes were needed due to the magnitude of the economic consequences of the pandemic, as well as stricter emissions standards. The company, which employs 180,000 people worldwide, said it will consult with unions on the restructuring of some of its plants in France.
"The planned changes are essential to ensure the sustainability of the company and its long-term development," said President Jean-Dominique Senard in a statement.
Renault shares fell nearly 50% on the year.
The decision to remove the Renault brand from China is part of the new alliance strategy, which will make each member take the lead in specific geographies while the others follow suit. Nissan will lead the way in North America, the Middle East, and key markets in Asia, including China and Japan. Renault will take first place in Europe and South America, while Mitsubishi has been assigned parts of Southeast Asia and Oceania.
On Thursday, Nissan announced that it will reduce production capacity by 20% and close a plant in Spain as part of the review.
- Charles Riley contributed to this report.