Renault to cut 800 engineering jobs in France, expand AI recruitment

French carmaker Renault Group plans to eliminate 800 engineering positions in France by the end of 2027 as part of a broader effort to boost competitiveness amid growing pressure from Chinese automakers, Reuters reports.

Speaking during a conference call, Philippe Brunet said Chinese automotive brands have more than tripled their share of the European market over the past two years, driven by technologically advanced vehicles and competitive pricing.

According to Brunet, the rapid rise of Chinese manufacturers has created challenges for established industry players across Europe.

France accounts for roughly half of Renault's engineering workforce, with around 5,500 engineers employed in the country. In mid-April, the company announced plans to reduce its overall engineering headcount by 15–20 per cent by the end of 2027. The elimination of 800 positions forms part of that restructuring programme.

At the same time, the transformation plan includes significant investments in workforce development. Renault intends to retrain approximately 2,500 employees and recruit between 150 and 200 new specialists. Priority hiring areas will include vehicle electrification, software development, and artificial intelligence.

The company expects labour unions to review and potentially approve the plan in July, with implementation scheduled to begin in September.

Brunet also outlined a broader reorganisation of Renault's structure and working methods aimed at streamlining research and development processes. The changes are intended to improve the company's agility as it competes with Chinese manufacturers, some of which have reduced vehicle development cycles to as little as two years.

Traditionally, developing a new model in the automotive industry has taken between four and five years, highlighting the competitive pressure facing established European carmakers.