French carmaker Renault plans to reduce its number of engineers by 15–20% over the next two years.
That could mean up to 2,400 of the current 11,000–12,000 engineers worldwide would leave the company.
A Renault spokesperson said the reductions would be handled without forced layoffs.
The development of new technologies and core design work will remain in France, the company added.
Engineering centres in countries including Brazil, India, Morocco, Romania, South Korea, Spain and Turkey will also cut engineering posts.
European carmakers face intense competition from China
Renault, like other European automakers, is facing stiff competition from Chinese brands, particularly in electric vehicles. Chinese manufacturers are known for lower costs and faster development cycles.
In March, Renault CEO François Provost announced a major restructuring, saying he wanted to “compete with Chinese vehicle manufacturers in terms of innovation, cost and speed.”
Renault plans to launch 36 new models over the next five years and shorten development times to 24 months, compared with the much longer timelines traditionally seen among European carmakers.
Renault is bringing back the compact Twingo as an electric vehicle with a low price. Image: Gonzalo Fuentes/REUTERS
By collaborating with Chinese engineers at its research and development centre in China, Renault has already cut the development time for the new Twingo to 21 months.
Edited by: Darko Janjevic