French carmaker Renault SA is reportedly thinking about reducing its workforce by as many as 3,000 employees across the globe, as part of a cost-cutting strategy, according to French news site l’Informe, quoted The Economic Times.

COST-CUTTING PLAN “ARROW”

The plan, named Arrow, targets support roles including human resources, finance, and marketing. If implemented, about 15% of staff in these departments could be affected, potentially impacting the company’s headquarters near Paris and other sites worldwide.

A source familiar with the plan told l’Informe that a final decision could be announced by the end of the year. Renault has confirmed it is exploring cost-saving measures but said no decision has been made yet, mentioned the report.

A Renault spokesperson said that, given the uncertainties in the automotive market and strong competition, the company is looking for ways to simplify operations, speed up execution, and optimise its fixed costs.

FINANCIAL PRESSURES AND GLOBAL COMPETITION

The global car industry has been facing strong headwinds, and Renault is no exception. Even though the company does not sell cars in the United States and is therefore largely unaffected by US tariffs, it has still felt indirect impacts. European competitors, struggling with trade barriers, have increased their focus on Renault’s home market, adding more pressure.

At the same time, Renault is facing growing competition from Chinese carmakers, especially in the electric and hybrid vehicle segments, a space that is becoming increasingly crowded and price-sensitive.

Europe, where Renault sells over 70% of its cars, is showing limited growth. To expand, Renault plans to invest 3 billion ($3.4 billion) to launch eight new models in non-European markets by 2027.

FALLING PROFITS

Renault’s financial results have also been under strain. In July, the company reported a first-half loss of 11.2 billion, which included a huge 9.3 billion write-down related to its partner Nissan. Even without that one-time loss, net income dropped sharply to 461 million — less than one-third of what it earned a year earlier.

The drop was blamed on a weaker van market, higher costs linked to electric vehicle development, and rising competition.

Meanwhile, Renault has not provided further comment but is reportedly examining options to streamline operations and reduce costs while navigating a challenging market.

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