According to foreign media reports, Renault's goal of reducing the number of French staff has encountered obstacles due to the small number of employees who have accepted the voluntary separation plan, which is a key part of the company's cost-cutting plan.
Guillaume Ribeyre, a representative of the CFE-CGC union, said that only about 300 employees had accepted the plan, far below the company's target of 1900 layoffs. In December, Renault began offering workers exit incentives, which workers interested in participating in the project need to accept by September. A Renault spokesman declined to comment.
Renault's high employee pay is one of several challenges facing its chief executive, Luca de Meo. Affected by the epidemic, car sales in Europe, the company's largest market, fell sharply, causing Renault to make a record loss for the year. In May last year, the company unveiled its turnaround plan, which aims to cut 14600 jobs worldwide.
Under the plan, Renault needs to cut a total of 4600 jobs in France through a voluntary departure plan negotiated with unions, coupled with early retirement and natural layoffs. Last month, Clotilde Delbos, deputy chief executive of Renault, said the company was "making good progress" on the plan, but declined to give details.
The reluctance of Renault employees to leave reflects anxiety about job prospects during the global health and economic crisis. The French car industry lost about 16000 jobs last year and expects that number to rise to 60, 000 within three to five years, according to La Platforme Automobile, a French car lobby.
Renault warned investors last month that 2021 would also be a challenging year as the epidemic and chip shortages affected global car production. Last week, Renault unexpectedly sold all its 1.5% Daimler stake in an effort to reduce debt.
