Peugeot Cuts Another 1,500 Jobs in France

PSA Peugeot Citroen announced recently that that it want to shrink its workforce by 11,200 people, or 17%, over the next couple of year in order to deal with one of the worst slowdowns in recent history.

In July, the first cuts took place, as 8,000 jobs were lost by not replacing people who leave. Now, the French carmaker that is still the second largest in Europe will cut a further 1,500 jobs by 2014.

Even so, those cuts will take time to take effect, but at least it’s a move in the right direction. Peugeot will still be over capacity, over staffed and still holding onto too many obsolete models.

“The most difficult year for PSA will be 2013 and not 2012 because in 2012 they still had some assets to sell,” said Florent Couvreur, an analyst at CM-CIC Securities in Paris, who spoke to Bloomberg about the job cuts.