Renault plans to cut 3,000 jobs to stay competitive amid rising costs

French automaker Renault is preparing to cut about 3,000 jobs worldwide as part of a major cost-saving effort aimed at protecting its future.

The cuts, reported by French newsletter L’Informe, will mostly affect support roles in human resources, finance, and marketing. Renault aims to reduce these teams by 15% under a plan known as Arrow.

A company spokesperson said Renault is “considering ways to simplify operations, speed up execution, and optimise costs,” adding that no final decision has been made.

The plan comes as the carmaker faces pressure from higher electric vehicle costs, global competition, and slowing demand in key markets. “Given the uncertainties in the market, Renault must stay agile,” the spokesperson said.

Renault, which employed around 98,600 people at the end of 2024, posted a €11.2 billion ($13 billion) loss in the first half of 2025. That figure included a €9.3 billion write-down on its partner Nissan.

Without that write-down, net income still fell sharply to €461 million, less than one-third of what it earned a year earlier. Analysts say the new CEO, François Provost, faces a tough task restoring profits and improving investor confidence.

Provost, who replaced Luca de Meo in July after his move to Gucci-owner Kering, must also steer Renault through the impact of new U.S. tariffs and stiff competition from fast-rising Chinese carmakers.

Renault says it expects to decide on the proposed cuts before the end of the year.

Read more on Chinese carmakers outsell Renault, Audi in Europe as plug-in hybrid sales jump 121%