PSA/Peugeot-Citroen to lay off 8,000 to 10,000 employees in France

Article by Anita Panait, on July 5, 2012

PSA/Peugeot-Citroen will remove as many as 10 percent of its French workforce in 2012 in order to create further savings amidst a slowdown in sales, Christian Lafaye, head of the FO union, told Bloomberg News. Lafaye divulged that PSA will increase its job cuts in France to 8,000-10,000, which is double the number of the carmaker’s previously announced 4,000 layoffs.

Local daily Les Echos reported that the job cuts in France will affect 1,500 to 2,000 workers at PSA's Aulnay plant and around 600 employees at its Sevelnord joint venture plant with Fiat and at its Rennes site. At the end of 2011, PSA employed 100,356 people both on permanent and temporary contracts in France.

PSA also employed 209,019 workers around the world at the end of 2011. According to Franck Don, a CFTC union representative, PSA chief executive Philippe Varin told unions last week that the automaker has to increase its 2012 savings target of EUR1 billion ($1.26 billion). PSA is currently restructuring its operations to save money after its net debt ballooned to EUR3.4 billion at the end of 2011.

PSA’s money-saving efforts included seeking job cuts as well as conducting fund-raising activities like selling its headquarters building and issuing EUR1 billion in shares at a 42 percent discount. PSA also forged an alliance with General Motors Co. aimed at cutting purchasing costs and development spending. The deal entailed GM acquiring a 7-percent stake in PSA.

Topics: psa, peugeot, citroen

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 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