Renault prepares layoffs at Dacia: up to 900 employees could leave
Renault cuts 900 jobs at Dacia, under the triple pressure of declining sales, the economic crisis and the Chinese offensive
French carmaker Renault is preparing to reduce its workforce at its Romanian plant, Automobile Dacia, through a massive voluntary redundancy program that could affect up to 900 employees. The move, aimed at streamlining costs, comes amid tense wage negotiations and a global context marked by a slowdown in the European auto market and increasingly aggressive competition from Chinese manufacturers.
The decision reflects a broader trend in Europe's auto industry, where giants like Volkswagen have announced similar restructuring plans, forced to streamline operations to remain competitive.
Restructuring under tension: 900 departures and salary negotiations
Dacia, which currently employs around 11,000 people, has begun discussions to implement a voluntary redundancy program. Although the financial packages offered are generous—ranging between 24,000 and 200,000 lei, calculated based on seniority—the initiative creates an atmosphere of uncertainty.
This internal restructuring coincides with a crucial round of wage negotiations. Management is pursuing financial discipline and cost reductions to keep the Romanian plant viable, while unions are demanding increases to protect the purchasing power of employees, whose average net salary is 8,000 lei. Finding a balance is vital, as the Mioveni plant is already positioned as competitive within the Renault Group (average labor costs per vehicle are below 300 euros, better than in Turkey or Mexico, but higher than in Morocco).
Declining sales and economic slowdown
The need to reduce staff is directly linked to signs of a market slowdown. The first nine months of 2025 brought the first decline in Dacia sales globally, an evolution considered "small but important".
Factors that have contributed to this trend include:
- Electric model performance: Although the Dacia Spring was a pioneer of cheap electric cars, its recent performance has been described as "millstone", and sales of the base Sandero model have lost momentum.
- Affected domestic market: The Romanian auto market has also recorded significant declines, an example being August 2025, when Dacia sales fell by 38%, reflecting a general contraction in demand.
This unstable economic context forces Dacia to focus on maximum efficiency to prepare the launch of new models (such as the new Duster), which should relaunch growth.
The Chinese Threat: From Cost Leader to Technology Leader
The biggest catalyst for European restructuring is the meteoric rise of Chinese automakers. Asian companies such as BYD and Chery are no longer just niche competitors in the low-cost segment, but also leaders in technological innovation (especially in the electric segment), putting massive pressure on Dacia's business model.
BYD has already announced ambitious plans to open dozens of dealerships in Romania and has explicitly stated that it aims to dethrone Dacia from its market leadership position by 2030.
This aggressive price competition (in some cases, due to government subsidies) directly affects the segment that Dacia has traditionally dominated—that of affordable cars. Ironically, Dacia's very successful electric model, the Spring, is produced in China, on a Dongfeng platform.
In the face of this offensive, European manufacturers are forced to quickly transition to operational efficiency and innovation, and the voluntary layoffs measure at Dacia is a defensive strategy aimed at ensuring that the Romanian plant maintains its key production position in the Renault network, despite the challenges on the global market.
In conclusion, the voluntary departures program at Dacia marks a decisive moment, located at the intersection of union demands for higher wages and the management's need to align with a global reality in which the economy is slowing down and Chinese rivals are attacking with cutting-edge prices and technology.