PSA/Peugeot-Citroen to lay off 5,000 of its employees in France

Article by Christian A., on November 19, 2011

PSA/Peugeot-Citroen intends will lay off 5,000 of its employees in France, a CGT union official disclosed. This means that compared to previous announcement, a higher proportion of layoffs is in the company's domestic country. Union representative Jean-Pierre Mercier at PSA's factory in the Paris suburb of Seine-Saint Denis stated that 1,900 French manufacturing jobs would be cut, together with another 3,100 in the information technology, sales and research and development areas.

PSA did not comment on the workforce reduction. However, it reiterated its prior statements that voluntary departures or firings were planned. In October, the company disclosed 6,000 layoffs across Europe as part of its aim to lessen costs by 800 million euros or $1.1 billion in 2012 in order to offset a tougher European market.

The losses include 2,500 contractor positions and 1,000 manufacturing jobs. The other 2,500 job reductions would come generally in R&D, IT, marketing and sales, PSA added.

Last month, the company cautioned that its core vehicle manufacturing business would barely make a profit. As the company struggles with the downward trend in the prices in Europe, it expects its free cash flow to be negative for 2011. The company's sales during the third quarter dropped 1.6 percent to 9.31 billion euros, while group sales increased 3.5 percent to 13.45 billion, thanks to PSA's majority share in French parts supplier Faurecia SA.

Topics: psa, peugeot, citroen

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries