PSA Peugeot Citroën to Cut 3,500 Jobs in Europe as it Tries to Slash Costs
French carmaker PSA PeugeotCitroën is feeling the burden of the economic crisis as the company said on Wednesday that despite group revenues being up 3.5% compared with third-quarter 2010, its core automotive division's revenues are down 1.6% year-on-year and as a result, it would barely break even this year.
The Paris-based automaker blamed the drop in revenues on the negative impact from the aftermath of Japan's tsunami (€250 million) and the higher prices of raw materials (€700 million).
PSA's management said it would try to restore the automotive division's competitiveness and profitability by implementing an €800 million (US$1.13 billion) cost-savings plan in 2012, which will reduce purchasing costs by €400 million and fixed costs by another €400 million.
According to a statement issued by the company, these measures could result in the loss of an estimated 3,500 jobs in Europe in 2012, including 1,000 positions in manufacturing and 2,500 positions elsewhere.
PSA Peugeot Citroën to Cut 3,500 Jobs in Europe as it Tries to Slash Costs
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