The French car giant Renault is preparing for a large-scale “engineering diet“, which will rearrange the layers of its development activities over the next two years. The company plans to cut between 15% and 20% of its engineering staff, which means that up to 2,400 specialists out of a total of 11,000 in this sector will have to look for new careers.
The move is part of the brand's new transformation strategy, which aims to turn Renault into a more flexible and adaptable machine in a world dominated by software and electric cars. Instead of cumbersome processes, the company is betting on accelerated development, which will shorten the time to launch new models on the market - a critical factor for survival in the battle with aggressive Asian manufacturers.
The end of an era in Russia
About Renault The transformation is also related to the final closure of the Russian page. After leaving the market in May 2022, the French giant handed over its assets, including the plant (now producing the revived “Moskvich“), to the Moscow government for the symbolic sum of one ruble. An interesting detail is that the French did not leave a single gram of technological know-how – no documentation or components with which to maintain the original production, leaving the new owners to find a way forward on their own.
The economic loop
While Renault is shrinking to become more efficient, the market in Europe continues to suffer from difficult financial conditions. High bank interest rates, which have reached record levels, are the main barrier to buying new cars. The statistics are inexorable: over 63% of consumers point to expensive credit as the No. 1 reason for giving up a new key in their pocket.
In this context, the cuts at Renault are not just cost savings, but strategic repositioning. The company no longer aims to be the largest in terms of staff, but the fastest in engineering solutions. The stakes are high, and the time for mistakes is ever decreasing.