Report – PSA Peugeot Citroen to cut another 3,450 jobs in France image

According to people that have knowledge of the automaker’s strategy, PSA Peugeot Citroen is seeking to drop another 3,450 employees in its home country next year.

The troubled carmaker – which is still the second largest in Europe, behind Volkswagen AG – is deeply implicated in a recovery strategy established by the new Chief Executive Carlos Tavares, after the company secured more funds through a capital increase plan that saw China’s Dongfeng Motors and the French government each take a 14% stake.

The new job reductions will be achieved through a series of early retirements, voluntary buyouts and internal transfers, told Reuters the people, who declined to be identified because of the sensitivity of the matter. The management at PSA aims to unveil the planned reductions to the unions early next week. Around 1,500 people from the affected lot would be given the chance of early retirement, while another 550 would be given compensatory buyouts and 1,400 would be relegated to new positions within the ranks of the automaker.

According to CFDT union official Xavier Lelasseux, PSA spoke to workers that around 295 of the 60,000-strong domestic workforce could be vulnerable to new cutbacks, and “ultimately that leaves about 9,000 people that I’m worried about,” said Lelasseux.

Via Reuters