PSA Plans to Drop 6,000 Jobs

The French automotive group PSA Peugeot-Citroen announced through the voice of its chairman, Philippe Varin, that the group plans to reduce its number of workers by 6,000 in France until 2012.

That represents about 10 percent of the workforce the company has in France. In a report from, Philippe Varin mentioned the automotive group’s plan will boost productivity by 20 percent and will be accomplished through non-replacement of workers who will voluntarily leave the company by retiring.

Varin insisted the company will not proceed with any other restructuring plan. From the beginning of the year, PSA launched a voluntary departure scheme for non-production staff, which by the end of October this year, stretched to include productive workforce as well. The result was a 4,800 job cut.

The group’s chairman said job cuts this year for PSA worldwide, including its auto parts unit Faurecia, reached 13,000.

PSA’s shares surged yesterday, after the group announced it raised its earning forecast for 2009. "Due to recent improvement in the automobile market and the ongoing success of the new Peugeot and Citroen models, the group's production and sales performance is significantly stronger than forecast," revealed a company statement.

With the company looking to further increase its market share in China, where all the automotive groups aim to be now, PSA reported a loss of EUR962m (USD1.44bn) in the first six months of the year.

PSA forecasted a 30 percent higher fourth quarter output than the same period last year and up 17 percent over the third quarter. This means the operating income for the second half is expected to break even and the cash flow for the whole year is set to be positive.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories