Renault to cut 7,500 jobs in France by 2016

City A.M. Reporter
Carmaker Renault aims to cut around 7,500 jobs in France by 2016, as it tries to boost competitiveness amid a slump in its domestic and European markets.

The reduction in headcount is equal to 14 per cent of Renault staff in France. Around 5,700 departures are expected to come through natural turnover, according to Renault.

Automakers are facing a sustained decline in the European car market as the Eurozone debt crisis and government austerity measures sap consumer demand. In 2012, car sales in France, Spain and Italy fell to the lowest levels in years.

Last week, Japanese carmaker Honda said it was cutting 800 jobs at its plant near Swindon as it battled falling demand.