The struggling carmaker will axe nearly 4,600 positions in France through voluntary retirement and retraining schemes, while more than 10,000 jobs will be scrapped in the rest of the world.
Carmaker Renault said on Friday it was launching talks with unions to restructure some French plants and potentially close others as it confirmed plans to cut around 15,000 jobs worldwide to ride out a slump in sales.
"This plan is essential", said CEO Clotilde Delbos in a statement from the French carmaker which reported its first losses in ten years last February.More news: UK: Boris Johnson defends top aide for flouting lockdown measures
Renault and its partners Nissan and Mitsubishi had unveiled on Wednesday a plan to deepen their alliance, a top global producer of cars, that only months ago seemed on the verge of breakup.
Renault will cut about 14,600 jobs and reduce production capacity by a fifth as it seeks to slash costs to weather the pandemic. The company plans to trim its global production capacity to 3.3 million vehicles in 2024 from 4 million now, focusing on areas like small vans or electric cars.
The cost-cutting is on a similar scale to Nissan, Renault's alliance partner, which on Thursday announced the closure of its Barcelona vehicle plant as part of a restructuring plan.More news: Mercedes-AMG C 63 Coupe launched at Rs. 1.33 crore
Cost-cutting measures announced by both Renault and Nissan mark a departure from the ambitious expansion plan devised by now-ousted leader of the alliance, Carlos Ghosn.
"We're not looking to be on top of the world, what we want is a sustainable and profitable company".
Renault's sales were down 3% previous year and the number of vehicles sold in the first three months of 2020 fell by 25%, before dropping further in April.More news: Fortnite Doomsday event DELAY
It is now negotiating the terms of a five-billion-euro rescue loan from the French state, which owns a 15 percent stake in the automaker. It said optimising production costs will save the firm €650 million (£577m), while administrative costs will be reduced by €700m (£632m).