French automaker Renault is considering cutting up to 3,000 jobs worldwide as part of a major cost-reduction initiative known internally as ‘Arrow,’ according to a report by French outlet l’Informe.
The plan, which aims to streamline operations and lower fixed costs, would primarily affect support divisions such as human resources, finance, and marketing, representing about 15% of those departments.
The proposed reductions could impact employees at Renault’s Boulogne-Billancourt headquarters near Paris and other international locations.
Sources cited by l’Informe said that while discussions are ongoing, a final decision is expected by the end of 2025, and the proposal has not yet received formal approval.
Renault confirmed it is exploring measures to simplify its operations and improve cost efficiency, but emphasized that no final decisions have been made.
“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,” a company spokesperson said.
As of the end of 2024, Renault employed 98,636 people globally. The potential layoffs reflect wider industry challenges, as automakers worldwide contend with slowing European demand and rising competition from Chinese manufacturers.
Although Renault remains largely unaffected by U.S. tariffs, as it does not sell vehicles directly in the American market, it continues to face pressure in its primary European base, where over 70% of its vehicles are sold.
To offset stagnant demand, Renault has intensified its focus on emerging markets. Earlier this year, the company announced a €3 billion ($3.4 billion) investment to launch eight new models outside Europe by 2027.
The company’s financial results have underscored the urgency of restructuring. In July, Renault posted a first-half net loss of €11.2 billion ($13 billion), largely due to a €9.3 billion write-down linked to its long-time partner Nissan.
Even excluding that charge, net income fell sharply to €461 million, less than one-third of the previous year’s level, amid a weaker van market, increased electric-vehicle production costs, and heightened competition.
Both Bloomberg and AFP have reported on l’Informe’s findings, with Renault reiterating that discussions are ongoing and no specific job-cut numbers have been confirmed.
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