Renault to slash 20% of engineering jobs

FRENCH carmaker Renault is set up to cut up to 2,400 engineering jobs globally as it restructures to remain competitive against rapidly advancing Chinese manufacturers.

A company spokesperson said the cuts could affect cutting 15–20% of its engineering workforce over the next two years. The company currently employs 11,000–12,000 engineers worldwide.

While advanced technology development and vehicle design will remain centred in France, the layoffs are expected to impact multiple regions, including Brazil, India, Spain and Turkey.

China dominance

The move reflects intensifying global competition, particularly from China. The country is the world’s leading carmaker, producing more than 21m in the first three-quarters of last year and cornering 70% of the EV market.

The news follows Volkswagen’s announcement recently that it plans to cut up to 50,000 jobs by 2030 amid similar challenges.

Major restructure

Renault’s restructuring is closely tied to efforts to reduce EV development costs by 10–30%, as outlined in its latest strategy update. The company reported a 15% fall in operating profits in its 2025 financial results.

Renault has already demonstrated a shift in approach through collaboration with Chinese partners, developing its new Twingo EV in just 21 months – a significantly compressed timeline by industry standards.