Monday, November 24, 2008
Peugeot Citroen cuts 2,700 jobs
French car company Peugeot Citroen has announced plans to shed 2,700 jobs because of falling demand in Europe.
It predicts sales volumes will fall by at least 10% in 2009, following a 17% drop in the last quarter of this year.
The company said the job cuts would affect assembly-line workers, managers and office staff.
In October this year, Peugeot Citroen cut its profit forecast for 2008 and started "massive" production cuts in the wake of a global downturn.
The carmaker also plans to move 900 workers from its French factory in Rennes to other sites, under a plan which is to be presented to its works council on 2 December.
Peugeot Citroen human resources director Jean-Luc Vergne said urgent action was needed in order to protect the future of 200,000 employees.
The group's sales fell 5.2% in the third quarter.
Gloomy climate
According to the European carmakers' association, Acea, new car sales in Europe dropped by 14.5% in October, the sixth monthly fall in a row.
Peugeot Citroen's announcement is the latest in a series of drastic measures taken by car companies worldwide in order to prevent the build-up of unsold stock.
DATED: 24.11.08
FEED: AW
