Renault Announce Job Cut of 7500!

Renault to cut 7500 jobs in France by 2016

Renault have joined the long list of many to cut jobs to match the reduce in demand across Europe. Whilst the UK have announced a record production year, the French car market amongst others in southern Europe have slumped.

French car registrations have dropped to their lowest since pre millennium 1997 which has lead to the unavoidable cut in jobs for the French manufacturers. Renault have announced that there will not be a complete closure of a plant in France, just that certain parts of the plants will be unoccupied.

Peugeot Citroen announced a plant closure in the latter months of 2012 which has since been over turned due to the government investment the mass market manufacturer received to keep the plant open and the jobs intact.

Renault are expected to include over 5000 job departures through the form of what they call natural turnover, which is the retirement and resignation of staff. The total cut will result in the mass market manufacturer losing 14 % of Renault staff in France. Renault in total employ 128,000 people across the world and plan on increasing that number in the future rather than looking to cut the number to save on costs.

Honda have only recently announced a cut of 800 jobs in the UK along with Ford who have announced a closure of the Transit plant in Dagenham. All companies have insisted these cuts and closures are essential in the aim to keep their head above water and break even, as the demand is set to decline further in 2013.

The majority of manufacturers have suffered in 2012 and they simply cannot afford to be producing more vehicles than they are selling. A reduce in demand will have to lead to a reduce in supply and then therefore an increase in price in order for the companies to try and reach a profit for the year.