Renault announces 6,000 job cuts

Business Materials 10 September 2008 00:10 (UTC +04:00)

French carmaker Renault has announced 6,000 job cuts, as it responds to an industry-wide slowdown in sales, reported BBC.

Renault said that 4,900 positions would go in France, and 1,100 in other European countries, through voluntary redundancy measures.

French unions have reacted angrily to the news, with the CGT union calling for a one-day strike on Thursday.

The CGT also asked President Nicolas Sarkozy to intervene. The French government owns 15% of Renault.

Renault's move follows its announcement in July that while its half-year profits had risen 37%, it had fallen behind on its sales targets.

Some 1,000 jobs will go at Renault's Sandouville plant in western France, which makes the firm's large-sized, but weak-selling Laguna model.

Renault is also to freeze the hiring of new staff.

It said it now intended to sell more than three million vehicles this year compared with its original goal of 3.3 million.