Peugeot to cut almost 5000 jobs in France image

Peugeot Citroen, France largest carmaker, on Tuesday announced that the company will cut 5000 jobs mostly in France next year as part of a wide-ranging cost-cutting plan.

According to France Press, 1000 of those impacted will be workers in research and development areas.

“The group’s international development can’t be carried out by cutting our jobs here given that we’re the ones who created PSA’s wealth,” Mercier said on the sidelines of a works council meeting.

The move comes weeks after the group announced plans to cut around 6,000 non-production posts across Europe to save around 800 million euros (1.08 billion dollars U.S.) next year. However, it said than that no full-time workers in France would lose their jobs, and only around 800 temporary contracts would be lost in its home country.

Vehicle manufacture is one of the Fance’s key industries, and the sector is thought to employ, directly or indirectly, a quarter of the national workforce.

PSA employs 200,000 people around the world, and is investing in research and development facilities in emerging countries including China and Brazil.

“If they want to invest abroad, they should find the money in their funds. It shouldn’t be done to the detriment of jobs in France,” said a union spokesman . “Today we’re competitive in France and we’re going to fight to keep our jobs.”