PARIS, April 14 (Reuters) - Renault SA will cut engineering staff by between 15% and 20% over the next two years, a spokesperson said on Tuesday, in a bid to improve agility and become more robust. (
Renault to cut up to 20% of engineers as competition from China heats
Renault's Response to Intensifying Chinese Competition
By Gilles Guillaume
Planned Engineering Staff Reductions
PARIS, April 14 (Reuters) - French automaker Renault SA will cut its global engineering staff by between 15% and 20% over the next two years, a spokeswoman said on Tuesday, in a bid to become more agile in the face of competition from low-cost Chinese rivals.
Impact on Workforce
The job cuts would amount to up to 2,400 staff, based on a current engineering workforce of around 11,000 to 12,000 people. Renault had 100,541 employees in total at the end of last year.
Challenges from Chinese Automakers
Renault, like all legacy automakers, is seeing a raft of Chinese brands entering its most important markets.
Competitive Advantages of Chinese Brands
Chinese players are known for their low costs and faster development times. Renault CEO Francois Provost has said the group should mirror the Chinese methods.
Adopting Chinese Development Methods
It has already cut the development time of its new Twingo to 21 months after partnering with Chinese engineers at its research and development centre in China.
Transformation Strategy and Reporting
The staff reduction is part of Provost's broader transformation strategy unveiled last month.
Media Coverage
The Renault engineering cuts were earlier reported by regional French newspaper Ouest-France.
(Reporting by Gilles Guillaume and Dominique Patton; Editing by Makini Brice and Joe Bavier)
