PSA Peugeot Citroen insists with planned job cuts image

PSA Peugeot Citroen insists it will go on with planned job cuts, even as France announced support measures for the auto industry and called for EU action to limit South Korean imports.

According to Peugeot, the 8,000 planned layoffs would help the company save €1.5 billion and stop its losses. “The depth and persistence of the crisis impacting our business in Europe requires the launch of the reorganization,” Peugeot CEO Philippe Varin was quoted as saying by Reuters.

PSA Peugeot Citroen, Europe’s second-biggest carmaker, reported a €662 million loss at its auto division. Naturally, job cuts are a very impopular measure in the country, with 2,000 workers marching to Peugeot’s Paris headquarters in protest against the cuts. Their representatives on the works council demanded an independent report, which could potentially delay the reorganization by up to three months.

Other European carmakers could follow Peugeot’s tough restructuring plans. One of them is Fiat, as CEO Sergio Marchionne warned he may have to close another Italian plant. In his turn, Renault’s Carlos Ghosn admitted that significant restructuring by a European automaker would force others to follow.