Peugeot-CitroŽn plans to save €800-mn through 6,000 jobs cuts in Europe

French carmaker Peugeot-CitroŽn plans to eliminate 6,000 jobs across Europe by 2012 in an attempt to save €800 million ($1.1 billion) in costs and restore its competitiveness and profitability.

The new plan comes over and above its 2009 announcement of saving €3.7 billion.

The Paris-based car maker also warned that warned that it expects its profit to fall short of expectations, hurt by a ''challenging'' environment in Europe and losses sustained in the aftermath of the Japanese disaster this year.''

Peugeot-CitroŽn employs over 205,000 people globally, including 100,000 in France and a total of 167,000 people in Europe.

Peugeot-CitroŽn, the largest automaker in France and second largest in Europe after Volkswagen AG,  said that the cuts are designed to streamline its organisational structures or to adjust project budgets, particularly in sales, marketing, information technology and research and development.

These organisational measures could result in the reduction of 2,500 jobs by in 2012 in marketing, sales, information technology and other support roles in Europe, 1,000 jobs from its manufacturing operations and the rest from outsourcing contracts with outside contractors.