France

Peugeot Citroën will cut 4000 French jobs say unions

AFP/Philippe Hugue

French auto giant PSA Peugeot Citroën will cut at least 4,000 jobs in France next year as part of a wide-ranging cost-cutting plan, union sources said on Tuesday.

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According to two of the main trade unions, the CGT and the CFDT, about 1,000 jobs will be cut in production, 500 in research and development, 400 in other departments and between 2,200 and 2,500 jobs will be cut in jobs with external partners.

About 1,600 of the cuts in external partners will be made in research and development, the unions say.

The company announced last month that it planned to axe thousands of jobs in Europe as part of an 800-million-euro cost-cutting plan, amid a stagnant European car market.

Vehicle manufacture is one of the Fance's key industries, and the sector is thought to employ, directly or indirectly, a quarter of the national workforce.

But Peugeot and France's other national champion, Renault, have recently received cheap state loans to help keep them afloat, and the sector benefits from a state subsidy to consumers who trade old cars for new ones.

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