Tuesday 26 May 2020 9:02 pm

Renault to cut 5,000 jobs by 2024 - report

French automotive giant Renault is set to announce plans to cut up to 5,000 jobs over the next five years in a cost-saving drive, local media reported.

The company, which is still in the process of securing a €5bn state loan in order to bolster its coronavirus-stricken finances, is looking to save €2bn in costs.

Read more: Nissan considers moving Renault production to Sunderland plant

According to Le Figaro, the carmaker will prioritise those workers planning on retiring for the job cuts, rather than direct lay-offs.

In the first quarter, revenue at Renault fell by a quarter as car sales slumped due to the pandemic.

Last week it was announced that the firm had reached a deal over a long-sought rescue package with its banks, but the agreement is still set to be rubber-stamped by the French finance ministry.

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Speaking today, French president Emmanuel Macron said the loan would not be signed off until the carmaker had completed talks with its unions over its workforce and factories.

Earlier this week Reuters had reported that the carmaker could announce job cuts and factory closures as part of its cost-cutting plans.

Macron also announced an €8bn plan to make France the top producer of clean vehicles in Europe and urged French carmakers to make vehicles in their own country.

Read more: Renault sees revenue drop a fifth due to coronavirus

Renault is also expected to provide an update later this week regarding its alliance with Japanese car giant Nissan.

The partnership has been strained in recent years due to the fallout over the arrest of former Nissan executive Carlos Ghosn.