PSA Denied Rumors about Expanding Layoffs in France image

Recently PSA/Peugeot-Citroen denied a report which stated that the company plans to extend voluntary redundancy offers or retrain to a larger than planned group of French workers.

As a money-saving restructuring program the company targets 1,900 voluntary job losses in France and 6,000 in Europe. But a PSA Peugeot-Citroen spokesman said the company does not plan to increase its goal of convincing 1,900 French workers to volunteer for a buyout or a retraining program.

The restructuring program was initially reserved for overstaffed roles, but an anonymous source said the company will extend it to other categories where staffing is sufficient. The targeted 6,000 European job cuts include 2,500 external suppliers and service providers’ positions and 3,500 within the company, achieved through non-replacement workers who retire or resign, and voluntary departures.

In 2011 the company’s net debt reached 3.4 billion euro, which made Peugeot-Citroen think seriously about a range of money-raising efforts in 2012, including the sale of the 48-year-old headquarters building. The company also agreed to a partnership with GM, to reduce development and purchasing costs, trying to revitalize the European operations. GM also bought 7% of the PSA Peugeot-Citroen.