The European automotive industry has recently been facing significant challenges, impacting producers themselves as well as the thousands of employees working in the sector. The President of the Automotive Parts Manufacturers Association, Tomasz Beben, reported that last year, due to the decline in demand for automotive parts in Europe, 54,000 jobs were eliminated. Further job cuts are expected this year, potentially reaching tens of thousands of additional positions.

One of the most telling examples of changes in the automotive industry is the decision of Stellantis, a conglomerate that owns brands such as Peugeot, Citroen, Opel, and Fiat. The company announced a temporary halt in production at several European plants, including those in France, Italy, Germany, Spain, and Poland.

At the plant in Tychy, Poland, some workers have already been sent on mandatory leave, and production lines are scheduled to stop for several days. The main reason behind these measures is the declining demand for new cars in the European market. The Solidarnosc trade union reported that production at the factory will be halted for eight days—on 10, 13, and 24 October, as well as from 27 to 31 October.

At the Poissy plant near Paris, France, and at the Pomigliano d'Arco plant near Naples, Italy, production is expected to be halted for up to three weeks.

Alongside production halts, some automotive companies are opting for job reductions as part of cost-saving strategies.

French carmaker Renault plans to lay off 3,000 employees through a voluntary departure programme. The cuts will affect employees in support departments, including human resources, marketing, and finance, representing a 15% reduction in the company’s workforce, as reported on Saturday, 4 October, by the French newsletter L'Informe. The group plans to implement redundancies at its headquarters in Boulogne-Billancourt, a suburb of Paris, as well as at other locations worldwide. A final decision is expected by the end of this year.

’Given the uncertainty in the automotive market and the highly competitive environment, we confirm that we are considering ways to simplify our operations, accelerate execution, and optimise fixed costs,’ a Renault spokesperson told Reuters.

In H1 2025, Renault recorded a net loss of €11.2 billion, including €9.3 billion in write-offs related to its stake in partner company Nissan. Excluding the write-off, the net profit of the French company dropped to €461 million. The group's financial results were affected by a weaker van market, rising costs related to electric vehicles, and mounting commercial pressure in an increasingly competitive environment. As of the end of 2024, Renault employed 98,636 people worldwide.

Similarly, Bosch, the world's largest automotive parts supplier, has announced plans to cut about 13,000 jobs, citing the need to adjust its workforce to declining automotive market amid growing pressure to optimise costs.