Renault will lay off 20% of engineers to cope with Chinese competition

The French car manufacturer Renault has announced that it will lay off between 15% and 20% of its engineers globally over the next two years, which translates to a reduction of up to 2,400 employees from a workforce of approximately 11,000 - 12,000 engineers. This decision comes in the context of increased competition from Chinese car brands, which stand out for their lower costs and shorter development times. Renault's CEO, Francois Provost, emphasized the need to adopt more agile methods inspired by Chinese practices. For example, the development period for the new Twingo has been reduced to 21 months due to collaboration with engineers in China. The staff reductions are part of a broader strategy to transform the company, which also includes the use of humanoid robots in factories, with the first robot, Calvin, already active on the production line in Douai. Renault is facing significant challenges in the automotive market, and these measures are intended to ensure long-term competitiveness.