PSA Peugeot Citroën to cut more than 2,000 jobs in France in 2017

PARIS — Reuters (Published Monday, Oct. 17, 2016 6:37AM EDT – Last updated Monday, Oct. 17, 2016 6:39AM EDT)


PSA Peugeot Citroën plans to cut more than 2,000 jobs, around 3 per cent of its work force, in France next year through a combination of early retirements and voluntary buyouts, France Info radio reported on Monday, citing internal documents.

Since emerging in 2014 from a brush with bankruptcy and a government-backed bailout, PSA has pledged to cut labour costs, inventory and model line-ups to restore profitability.

The management said in the internal documents that uncertainty over Brexit and falling sales of diesel vehicles mean PSA must be “cautious”, according to France Info.

Peugeot plans to cut 2,133 jobs in France, according to France Info. Peugeot’s head count, including jobs at its car parts supplier Faurecia, stood at 78,274 in France overall at end-2015, its annual report said.

PSA Peugeot Citroën has cut 17,000 jobs since early 2013, France Info said.

“PSA prepares a fourth job-cutting plan. It’s a true scandal,” Jean-Pierre Mercier, a member of the CGT labour union at PSA told RTL radio on Monday.

PSA Peugeot Citroën was not immediately available for comment.

Things got better at PSA recently, as the carmaker delivered record first-half profit. It also said earlier this year that it was considering paying a dividend for 2016.

France holds a 14 per cent stake in the carmaker, along with China’s Dongfeng.

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