Renault could close plants and cut jobs this week

French automaker Renault could reveal job cuts and plants closures on Thursday as the company looks to converse 2 billion euros ($2.2 billion) in costs, a representative for far-left union CGT stated on Monday.

Renault has called for a meeting with unions on Thursday over its cost-saving plans, the representative stated.

“This is when the general management will formalize what it calls a 2 billion (euro) cost-cutting plan, in which further staff decrease and even site closures can be expected,” CGT representative Fabien Gache said.

A second union source confirmed that a meeting with unions is set to take place on Thursday evening.

A Renault representative stated that French law requires advance notice to staff representatives, adding that he was not knowledgeable about the day and the timing of the meeting.

The automaker, which last year posted its first loss in 10 years, is expected to discuss a drastic three-year savings plan at the end of the week.

Renault has been experiencing hard time since the November 2018 arrest of its long-time boss Carlos Ghosn on allegations of financial misconduct. Ghosn has denied these charges.

The automaker has also suffered reduction in sales in major markets even before the coronavirus pandemic damaged demand for vehicles..

French finance minister Bruno Le Maire, who is in talks over a 5 billion euro ($5.45 billion) loan for Renault to help it through the ongoing coronavirus crisis, warned last week that the company could disappear if it didn’t receive help soon. The automaker is 15% owned by the French state.