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Monday, October 17, 2016

Brexit And Diesel Fears Lead PSA To Axe Over 2,000 Jobs In France

#PSA #Peugeot #Citroen has cut roughly 17,000 jobs in three stages, since the beginning of 2013, and it's now looking into a fourth round of reductions.

Citing France Info radio, Reuters states that the Group will drop 2,133 jobs in France, blaming the effects of Brexit and falling diesel sales, after investing heavily in diesel technology, along with other European car manufacturers.

The cost-saving measures will be made through early retirements and voluntary buyouts and have been confirmed by a member of the CGT labor union at PSA, with RTL radio: "PSA prepares a fourth job-cutting plan. It's a true scandal", Jean-Pierre Mercier said.

Besides its concerns with the UK's decision to leave the European Union and falling diesel sales, PSA has yet another motive to carefully monitor its expenses and trim them down, as the Group had a near brush with bankruptcy two years ago. Back then, it pledged to drop labor costs, model lineups and inventory in order to become profitable again.

These days, the Group, which is backed up by the French government and China's Dongfeng Motor, delivered record first-half year profits and will pay shareholders a dividend for 2016.


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