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French automaker PSA Peugeot Citroen said Thursday it plans to cut at least 2,700 jobs in response to the worsening economic crisis that has seen European car sales plummet.

In a statement, the carmaker said the cuts would be made "at all sites and in all group departments."

Peugeot could offer "voluntary departure measures" to another 850 technicians and white collar employees at a Peugeot site in western France, taking the total possible job cuts to 3,550, company spokesman Laurent Cicolella said.

"This recession will continue in 2009," the company warned, with a minimum decline of 10 percent Europe-wide for the year, the company forecast.

With this forecast the carmaker 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.

Car sales in Europe have fallen dramatically since July, with an estimated 17 percent drop in the fourth quarter alone, Peugeot Citroen said.

Peugeot shares fell on the news, and at 0930 GMT were down 3.3 percent at euro12.89 ($16.29).


Sources :

1. IStockAnalyst : Peugeot Citroen to cut at least 2,700 jobs | Thursday, November 20, 2008 9:59 AM.