Renault is slashing 14,600 jobs as part of a major overhaul designed to reduce costs and help the French carmaker survive the COVID-19 pandemic.

A total of 4,600 jobs will be scrapped in France and 10,000 in other markets, Sherisse Pham and Hanna Ziady wrote for CNN Business late on Friday, May 29, 2020.

The company announced Friday that it will cut fixed costs by more than €2 billion ($2.2 billion) over the next three years. It also plans to reduce the number of cars it makes each year from 4 million to 3.3 million by 2024, and will stop selling Renault-branded vehicles in China. The plan will cost about €1.2 billion ($1.3 billion) to implement, the company said.

Renault is part of the world's biggest car-making alliance, alongside Nissan and Mitsubishi. Earlier this week, the companies announced they would make fewer models, share production facilities and focus on the existing geographic and technological strengths of each carmaker as they try to slash costs amid the coronavirus pandemic.

Renault said changes were needed because of the slowdown of the global automotive market, the scale of the economic fallout from the pandemic as well as stricter emissions standards. The company was in trouble before coronavirus, reporting its worst financial performance in a decade last year, with net profit dropping 99% to just €19 million ($21 million).

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