Peugeot-Citroen cuts 8,000 jobs
Jul 12, 2012 / 6:27 am
Struggling French carmaker PSA Peugeot-Citroen announced Thursday a drastic cost-cutting plan to slash 8,000 jobs in France and close a factory north of Paris, as it faces diving sales in crisis-hit southern Europe.
Union members vowed to try to fight back and plan protests later Thursday.
Company management announced the job cuts and closure plan during a meeting Thursday with its worker representatives.
The company, which warns it faces a first-half loss of $858.2 million this year, is trying to save over a billion as it struggles to compete in Europe's fiercely competitive car market. It is suffering particularly amid a slump in sales in the recession-hit south of Europe. Its sales plunged 20 per cent in Europe in the first quarter.
The restructuring plan includes the closure of Peugeot-Citroen's Aulnay-sous-Bois factory, one of the biggest car plants in France and seen as a bastion of car-making and of autoworkers' unions.
The company will also cut 1,400 jobs at its Rennes factory and 3,600 jobs in other French sites.
CEO Philippe Varin, grim-faced, told reporters that the company is losing $100 million per month. "No one will be left along the side of the road," he pledged:
The company is hoping a new alliance with General Motors Corp. will allow it to return to long-term profitability.
Read more Business News
|QHR Technologies Inc||0.55||-0.03|
|Anavex Life Sciences||0.53||-0.01|
|Copper Mountain Mining||1.52||-0.16|
The majority of Canadians prefer to make their big move during the summer season. There are a variety of reasons for choosing this time of year: it is easier to transport boxes in non-icy condition...
It appears as though more people these days are looking for an investment in real estate which offers cash flow returns. The fundamentals of cash flow type properties had been turned upsi...
Getintheloop Marketing Ltd. recently launched their membership platform, Getintheloop.ca. The new website offers an exclusive members area for access to discounts in the South Okanagan on premium res...
- 'Gatsby' earns $51.1M, 'Iron Man' $72.5M
- Chrysler recalls nearly 470,000 SUVs
- Bell not interested in selling more Astral
- Loonie dips over a quarter
- Taxman and the offshore tax havens
- Sharktopus views turns on YouTube TV
- Social media makes Disney blink
- BCE looks to cut $170 million
- TD Bank: Loonie could fall to 90 cents US
- Mixed results for North American markets
- Ex-Enron CEO cuts new deal
- Canadian dollar nudges upward