French carmaker Renault has said it plans to reduce the number of its engineers by 15 to 20% over the coming two years.
This means that out of the current 11,000 to 12,000 engineers worldwide, 2,400 will have to leave the company.
A Renault spokesperson said the cuts would be made without forced layoffs.
The development of new technologies and original design work will remain in France, he said.
Engineering centers in other countries such as Brazil, India, Morocco, Romania, South Korea, Spain and Turkey will also reduce the number of engineering positions.
European carmakers are facing tough competition from China
Renault, like other European automakers, is struggling with competition from Chinese brands, especially when it comes to electric vehicles. Manufacturers in China are known for their low costs and short development times.
In March, Renault CEO Francois Provost announced a major restructuring, stating its intention to “compete with Chinese automakers in terms of innovation, cost and speed”.
Renault also plans to launch 36 new models within the next five years, reducing development time to just 24 months.
The lead times for traditional European carmakers have generally been very long.
Through collaboration with Chinese engineers at its research and development center in China, Renault has already been able to reduce the development time for the new Twingo by 21 months.
Edited by: Darko Janjevic