‘We thought too big,’ Renault says as it axes 15,000 jobs in cost-cutting reboot GlobeBusiness
GONZALO FUENTES/Reuters
“We thought too big in terms of sales,” said interim Chief Executive Clotilde Delbos, adding the company was “coming back to its bases” after investing and spending too much in recent years.The French car maker was under pressure even before COVID-19 hit, posting its first loss in a decade in 2019, and has said nothing would be “taboo” as it reviews its business.
“The mindset has completely changed. The previous line was volumes and sales and being the first on the podium,” Delbos said. “We’re not looking to be on top of the world, what we want is a sustainable and profitable company.” Renault shares were down 5 per cent by 0820GMT, the worst performing stock on France’s blue-chip index.Renault, which is 15 per cent owned by the French state, faces the most sensitive restructuring measures in its home country, which will shoulder almost a third of the global job cuts and faces potential plant closures.
The government has said it will not sign off on the state-backed loan until management and unions conclude talks over jobs and factories in France. It is seeking further clarity on how some big factories will be reorganized and further guarantees on jobs before it gives the green light, according to a source familiar with the matter.
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