French car company Renault will lay off 15,000 people worldwide, emphasis on cost cutting

New Delhi French car company Reno has been affected by the Corona virus crisis. The company will hire 15,000 people from all over the world. Actually, the company wants cost cutting, for this, it plans to reduce the cost by 2 billion euros in the next three years. Reno said 4,600 jobs would be cut in France, while more than 10,000 in other countries would be cut. 

The company said that the production capacity of the group will be revised from 40 lakh vehicles in 2019 to 33 lakh by 2024. The statement said, the automobile industry is going through a period of crisis. In view of the need for change in terms of environmental protection before it, the company is taking steps. 

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Gian Domnik Senard, chairman of the company’s board of directors, said, “The changes that are being made are fundamental. The aim is to keep the company in the market and ensure its long-term growth. ‘ The group has a workforce of 1,80,000. The company has also deferred plans for capacity addition in Morocco and Romania. 

Its partners Nissan and Mitsubishi are large global automobile companies but have been in trouble since 2018, when its chief executive Carlos Ghosn was arrested. Reno incurred losses in 2019. The French government holds the largest 15 percent stake in Reno and is negotiating a 5 billion euro loan guarantee. Finance Minister Bruno La Myre said earlier this week that the group faces a risk of remaining in the market.