French carmaker Renault to cut 7,500 domestic jobs

Renault plans to cut 7,500 domestic jobs by 2016 as the French carmaker continues to struggle with plunging sales in the European car market.

Renault's move comes two months after its domestic rival PSA Peugeot-CitroŽn announced plans to cut 4,000 jobs in France next year as part of a wide-ranging cost-cutting plan. (See: PSA Peugeot CitroŽn to cut 4,000 jobs in France)

General Motors, Ford Motor and Japan's Honda Motor are also reducing their headcount in Europe amid falling demand in the region.

Renault yesterday said that it expected some 5,700 jobs to go between 2013 and end-2016 through natural departures, with the remainder coming from an extension of an early retirement programme.

The job cuts represent about 14 per cent of its workforce in France out of the more than 44,642 employees in the country. Renault employs 135,000 people worldwide.

The job-cuts would save the carmaker around €400 million ($540 million) in annual fixed costs.