ultimateimp – Renault Nissan Technology and Business Centre India (RNTBCI), the tech hub of the Renault-Nissan Alliance, is planning to lay off 5-10% of its workforce as part of a restructuring initiative. Sources familiar with the situation revealed that the centre, which employs 10,000 people, may cut between 500 and 1,000 jobs.
The restructuring comes as RNTBCI shifts its focus to core engineering functions. The centre has outsourced several departments, including finance, accounting, and supply chain management, to Genpact. This move allows the company to streamline operations and improve efficiency.
Sources confirmed that core engineering employees will not be affected by the layoffs, ensuring that the centre continues to support key automotive research and development efforts. As the Renault-Nissan Alliance refines its business strategy, RNTBCI aims to enhance productivity while optimizing workforce distribution.
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Renault Nissan Tech Centre Faces Workforce Changes Amid Nissan’s Business Shift
Mails seeking responses from RNTBCI and Genpact did not receive a reply before publication.
Renault Nissan Technology and Business Centre India (RNTBCI) serves as the global tech capability centre for Renault and Nissan. Renault owns 51% of the company, while Nissan holds the remaining 49%. Established in 2007, it was one of the first global capability centres in Chennai.
The main office is located at Mahindra World City on the outskirts of Chennai, with additional offices in Hyderabad and Bengaluru. According to its website, RNTBCI employs over 5,000 people in core engineering, 2,800 in the vehicle department, and the rest in global business operations, software technologies, and other functions.
The restructuring comes at a time of significant changes for Nissan. The failed Honda-Nissan merger in February disrupted plans to create the world’s fourth-largest automaker, trailing Toyota, Volkswagen, and Hyundai. With the deal abandoned, Nissan now faces the challenge of revitalizing its business strategy independently.
Nissan Plans Global Job Cuts While Indian Operations Remain Stable
In late 2023, Nissan Motor Co announced plans to cut 9,000 jobs worldwide and reduce manufacturing capacity by 20%. The decision aims to address rising losses and increasing competition from Chinese automakers. Despite these global layoffs, Nissan’s operations in India have not experienced significant impacts so far.
The Renault-Nissan Alliance continues to operate a major manufacturing facility in Chennai, known as Renault Nissan Automotive India. This plant produces vehicles for both domestic sales and export markets. While Nissan restructures its global business, its Chennai facility remains a key part of the company’s production network.
As Nissan moves forward with its cost-cutting strategy, the focus will be on improving efficiency and maintaining competitiveness in an evolving automotive market. The full impact of these global changes on Nissan’s future operations remains to be seen.