The plan would save Renault 400 million euros a year in annual fixed cost, which is required to lower its break-even point. Despite the reduction in workforce, CEO Carlos Ghosn announced that no plants in France will be closed.
Year 2012 is tough but 2013 is not expected to be smooth riding either. Carlos said at the Detroit Motor Show that he expects the European market to be "difficult" in 2013, predicting that car sales would fall about 3%, after contracting 8 % in 2012.
Renault's action adds further woes to France's ailing industrial sector.