French car giant company Renault announced on Friday the elimination of 15,000 jobs globally. The company plans to reduce costs by 2 billion euros in the next three years, part of the move. The company said 4,600 jobs in France while more than 10,000 jobs in other countries would be cut. The company said the group’s production capacity will be revised from 40 lakh vehicles in 2019 to 33 lakh by 2024.
“The vehicle industry is undergoing a crisis,” the statement said. “The changes that are being made are basic,” said Jien Domnik Senard, chairman of the company’s board of directors. The aim is to keep the company in the market and ensure its long-term growth,” said the group’s employees at 1,80,000. The company has also postponed capacity enhancement plans in Morocco and Romania.
The company has been affected by the coronavirus crisis. Its affiliates Nissan and Mitsubishi are big global vehicle companies, but since 2018, the problem has been in the way since the arrest of its chief executive officer Carlos Ghosn. Renault had reported losses in 2019. Renault has the french government’s largest 15 percent stake and is negotiating a 5 billion euro debt guarantee. Finance Minister Bruno La Mayre said earlier this week that the group risks being in the market.