Peugeot Citroen to cut 2,700 jobs
The Associated PressFrench automaker PSA Peugeot Citroen said Thursday it plans to cut 2,700 jobs in response to the worsening economic crisis that has seen European car sales plummet.
The plan, to be carried out through voluntary departures, is necessary because doing nothing "could throw into question, in the long run, the very survival of the group and its 200,000 jobs," the company said in a statement.
In a statement, the car maker said the cuts would be made "at all sites and in all group departments."
Car sales in Europe have fallen dramatically since July, with an estimated 17 percent drop in the fourth quarter alone, Peugeot Citroen said.
"This recession will continue in 2009," the company warned, with a minimum decline of 10 percent Europe-wide for the year, Peugeot Citroen forecast.
The carmaker also announced a plan to shift about 900 factory workers from its plant in Rennes to other sites, because of a "significant drop" in demand for the mid- to upper-range sedans built at Rennes.
Peugeot shares fell on the news, and at 0930 GMT were down 3.3 percent at 12.89 ($16.29).