The French automaker, the second largest in Europe, has decided to set up an early retirement benefit program for workers at its Rennes, France, plant willing to participate.
The approximately 500 job cuts, which equate to around 10% of the total on site workforce are a part of the company’s cost reduction strategy – which includes reducing headcount at manufacturing facilities that have overcapacity today.
According to the unions, which agreed to the plan, the company would allow Rennes employees which pass the age of 55 to voluntarily retire and still get 75% of their usual pay until they turn 60, said Pierre Contesse, a FO union official at the Rennes plant in Brittany.
According to Contesse, the new offer is specifically designed for the Rennes facility, which now has around 4,800 workers and because of overcapacity it keeps around 700 of them on furlough programs.
The factory makes the midsized Peugeot 508 and Citroen C5 – and as sales have constantly fallen the factory has struggled with overcapacity. Data from JATO Dynamics shows that in the first five months of the year, the European region deliveries for the 508 are down from 27,256 units in the same period last year to 18,979 cars, while the C5 fell to 8,425 units from 11,876 autos.
Via Automotive News Europe