Renault Plans 3,000 Job Cuts Under Cost-Saving "Arrow" Plan

French automaker Renault is preparing to cut about 3,000 jobs through a voluntary redundancy program targeting support functions, according to French newsletter L’Informe. The cuts are part of a cost-reduction strategy called "Arrow," aimed at streamlining departments such as human resources, finance, and marketing. This restructuring would trim roughly 15% of the company’s support staff, with the largest impact expected at Renault’s headquarters in Boulogne-Billancourt, near Paris, as well as other international offices. A final decision is anticipated by the end of the year.

Renault confirmed it is exploring cost-cutting measures but stressed that no specific job reduction numbers have been finalized. A company spokesperson said, “Given the uncertainties in the automotive market and the extremely competitive environment, we confirm that we are considering ways to simplify our operations, speed up execution, and optimize our fixed costs.”

At the end of 2024, Renault employed 98,636 people worldwide. The company has faced mounting financial pressures, reporting an €11.2 billion ($13 billion) net loss in the first half of the year. The loss was driven primarily by a €9.3 billion write-down on partner Nissan. Excluding that charge, net income still fell sharply to €461 million, just a third of the previous year’s level. Declines were attributed to weaker van sales, high costs tied to electric vehicle development, and stiff competition.

Newly appointed CEO Francois Provost, who took over in July after Luca de Meo’s departure to luxury group Kering, faces the urgent challenge of restoring profitability. Analysts note that Renault must not only rebuild its margins but also regain an investment-grade credit rating. In addition, the company is under pressure to navigate U.S. tariffs and intensifying competition from Chinese carmakers, particularly in the electric vehicle segment.

The "Arrow" plan reflects Renault’s attempt to restructure for efficiency while preparing for the future of mobility in a volatile global automotive market.