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Peugeot to cut 2000 jobs in 2017

An employee holds a car door at a production line of a Dongfeng Peugeot Citroen Automobile factory in Wuhan, Hubei province, China. REUTERS

PSA Peugeot Citroen plans to cut more than 2,000 jobs, around 3 percent of its workforce, in France next year through a combination of early retirements and voluntary buyouts, France Info radio reported on Monday, citing internal documents.

Since emerging in 2014 from a brush with bankruptcy and a government-backed bailout, PSA has pledged to cut labor costs, inventory and model line-ups to restore profitability.

The management said in the internal documents that uncertainty over Brexit and falling sales of diesel vehicles mean PSA must be "cautious", according to France Info.

Peugeot plans to cut 2,133 jobs in France, according to France Info. Peugeot's headcount, including jobs at its car parts supplier Faurecia, stood at 78,274 in France overall at end-2015, its annual report said.

PSA Peugeot Citroen has cut 17,000 jobs since early 2013, France Info said.

"PSA prepares a fourth job-cutting plan. It's a true scandal," Jean-Pierre Mercier, a member of the CGT labor union at PSA told RTL radio on Monday.

PSA Peugeot Citroen was not immediately available for comment.
Things got better at PSA recently, as the carmaker delivered record first-half profit. It also said earlier this year that it was considering paying a dividend for 2016.

France holds a 14 percent stake in the carmaker, along with China's Dongfen