The French car manufacturer Renault will globally reduce its engineering workforce by 15% – 20% over the next two years, a spokesperson announced on Tuesday, in an effort to become more flexible in the face of competition from low-cost rivals in China.
Up to 2,400 employees will be laid off, with the engineering workforce currently numbering around 11,000 – 12,000 individuals. In total, Renault had 100,541 employees at the end of last year, according to Reuters.
Renault, along with other traditional car manufacturers, is facing competition from Chinese brands entering its key markets. Chinese companies are known for their low costs and shorter development times.
Renault's CEO, Francois Provost, stated that the company should emulate the methods of Chinese brands.
The development time for the new Twingo has already been reduced to 21 months following a partnership with Chinese engineers at its research and development center in China.
The staff reductions are part of a broader transformation strategy presented last month by Provost.