PARIS -- Renault Group will move out of its current headquarters to a smaller building nearby as part of a company-wide effort to reduce fixed costs, a spokesperson said.
Renault has leased its main office building in the Paris suburb of Boulogne-Billancourt for several decades, but a recent accord on remote working means that less space is required. Managers and support staff members in the Paris region now work from home for two or three days a week as of September.
The automaker’s current lease ends before summer 2022, and the plan is for executives and other white-collar workers to move to nearby buildings until the new space is ready by 2025. Renault will also lease that building and will not incur construction costs, the spokesperson said Thursday.
Renault has said it will reduce its real estate footprint in the Paris region by about 50 percent, as part of new union contract negotiations and a 2 billion euro ($2.3 billion) cost reduction plan that was put in place in early 2020.
The cost-cutting plan also includes reducing global head count by nearly 15,000 workers and cutting back significantly on production capacity, although Renault has pledged to avoid forced layoffs.
Renault is currently in negotiations with French unions on a new employment contract as part of the transition to electric vehicles.
The automaker booked a record 7.29 billion euro ($8.4 billion) loss in the first half of 2020, but has swung to a small profit in the first half of 2021.
The new structure – which is still in the permitting process -- will be south of Renault’s existing headquarters along the Seine river. The site is across from the Ile de Seguin, where the automaker’s main factory was once located.
Renault did not say how much money the move could save.
PSA Group, now part of Stellantis, took similar steps in recent years in an effort to cut costs. In 2017 PSA moved out of its longtime headquarters in Paris near the Arc de Triomphe to the suburb of Rueil-Malmaison.
Then in 2020 PSA decentralized further, moving some executive and support functions to its Velizy technical center west of Paris, and others to its factory complex in Poissy, also west of Paris.