PSA Peugeot Citroen wants to layoff this year up to 10,000 employees in France, about 10% of its staff in the country. Slower sales forced cost cuts, said Tuesday a union official, quoted by Bloomberg. “In France only, the company will increase the target for layoffs to 8,000-10,000,” said in an interview for Bloomberg Christian Lafaye, leader of the second PSA union. PSA Peugeot Citroen, the second largest carmaker in Europe, announced in November that it will lay off 6,000 employees on the continent. The figure announced by the union leader is extending this measure.
Chief Executive Officer of PSA Peugeot Citroen, Philippe Varin, said last week in a meeting with the unions that the automaker must increase the savings target for this year, from 1 billion euros. Peugeot sales in Europe fell in the first five months by 15%, while overall car market shrank by 7.3%. Shares reached in June the minimum of last 23 years. The carmaker had, late last year, just over 100,000 employees in France, respectively 209,000 worldwide. The factories in Aulnay and Rennes are in danger of being closed down, in line with the European strategy of its partner General Motors, said in June another union leader. GM announced in mid-June that it will close Opel plant in Bochum, Germany, in late 2016. The market capitalization of the car manufacturer is only 2.7 billion euros.
PSA entered in March a strategic alliance with GM, and the U.S. group became the second largest Peugeot shareholder after the founding family. GM has paid 320 million euros for a 7% stake in the French company. Also in March, PSA sold new shares worth 1 billion euros to existing shareholders and posted sales of assets, including giving up a stake in profitable trucks division Gefco. Peugeot income per employee last year was 286,634 euros compared to 317,432 euros at Volkswagen, the biggest European carmaker, according to Bloomberg.
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