Renault Group is preparing a major overhaul of its engineering organisation, planning to reduce traditional engineering roles while increasing investment in electric mobility, software and artificial intelligence capabilities as competition intensifies across the global automotive industry.
The French automaker plans to eliminate 800 engineering positions by the end of 2027 as part of a broader workforce transformation designed to strengthen competitiveness and accelerate product development, BW People reported.
According to Reuters, Renault intends to reduce its engineering workforce by 15 to 20 percent over the next two years while simultaneously building new technology capabilities.
The proposed restructuring includes the elimination of 800 engineering positions, reskilling approximately 2,500 employees and recruiting between 150 and 200 specialists focused on electric vehicles, software development and artificial intelligence.
The company is expected to present the plan to labour unions in July, with implementation targeted to begin in September.
France remains central to Renault’s engineering operations, with around 5,500 engineers based in the country, representing nearly half of the company’s global engineering workforce.
The restructuring comes as European automakers face mounting competition from Chinese manufacturers, which have rapidly expanded their footprint in Europe through lower-cost production, faster product cycles and technology-led offerings.
During a conference call, Renault Chief Technology Officer Philippe Brunet said the competitive challenge extends across the broader automotive industry.
“All other manufacturers are suffering, the Koreans, the Japanese in Europe, or other Europeans, including us. We must be able to compete against this,” Brunet said.
A key objective of Renault’s transformation strategy is to accelerate vehicle development timelines.
While traditional vehicle development programmes have historically taken four to five years to move from concept to market, Chinese manufacturers are increasingly introducing new models within about two years.
Renault sees shortening development cycles as critical to maintaining competitiveness in a rapidly changing market.
To support that objective, the company plans to simplify research and development operations, reduce internal complexity and improve organisational efficiency.
Among the measures being considered is a target to cut time spent in meetings by 20 percent, allowing engineering teams to dedicate more time to product development and innovation.
The restructuring reflects a wider shift taking place across the automotive sector as vehicles become increasingly software-driven and digitally connected.
Demand is rising for expertise in artificial intelligence, software engineering and electric mobility, while traditional automotive skills are being supplemented by capabilities more commonly associated with technology companies.
Rather than relying entirely on external hiring, Renault plans to invest in retraining existing employees to support the transition.
The company’s strategy highlights the balancing act facing automakers globally as they manage cost pressures while continuing to invest in electrification, software-defined vehicles and advanced technologies.
By combining workforce reductions with large-scale reskilling and targeted recruitment, Renault aims to reposition its engineering organisation for an industry increasingly shaped by technology, speed and innovation.
