French automakers PSA Peugeot Citroen have announced that they will need to cut about 8,000 jobs in France and they have plans to shut down one of their factories as well. This will be due to the bleak scenario in European markets where auto sales are concerned. Job cuts will take place at the Aulney site in Paris where 3,000 jobs will be cut while 1,400 jobs will be cut from the Rennes factory and 3,600 jobs from other Peugeot Citroen sites across the country.
Earlier last year 6,000 jobs were cut and with this 8,000 more this year will take the total layoffs to 14,000 employees who have lost their job in the past two years. Peugeot Citroen has over 100,000 workers in France and over 209,000 across the globe.
Sales of the company have suffered a steep fall by over 15% in the first five months of this year as compared to 7.3% industry wise. The company is facing losses to the tune of €700 million in just six months of this year which is why they had to take this drastic step.
PSA Chairman Philippe Varin said, "I am fully aware of the seriousness of today's announcements, as well as of the shock and emotions they will arouse in the Company and its stake holding environment. The depth and persistence of the crisis impacting our business in Europe have now made this reorganisation project indispensable in order to align our production capacity with foreseeable market trends. We are committed to implementing the proposed measures while pursuing exemplary social dialogue and profoundly respecting our values."
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