Renault is to cut 7500 jobs in France by 2016.

The announcement comes as Renault seeks to reduce costs as Europe's car market sinks for a sixth straight year in 2013. French car registrations are at their lowest level since 1997.

The job cuts are expected to include 5700 departures through 'natural turnover', meaning resignations and retirements. The total number to be lost is equivalent to 14 per cent of Renault staff in France.

However, Renault CEO Carlos Ghosn has confirmed there are to be no plant closures in France.

The cuts are needed for the company to break even, according to French head of operations Gerard Leclerq.

"If an agreement is signed with unions, this staff redeployment would require neither a plant closing nor any forced departures," he said.

Renault employed about 128,000 people worldwide as of the end of 2011.

The news follows Honda’s announcement that is to cut 800 jobs in the UK due to low demand in European markets.

Holly Stevenson