PSA Peugeot CitroŽn to cut 4,000 jobs in France

French auto giant PSA Peugeot CitroŽn will cut at least 4,000 jobs in France next year as part of a wide-ranging cost-cutting plan, local press yesterday.

The new cuts, mostly in France, will see 1,000 jobs being cut in production, 500 in research and development, 400 in other departments and between 2,200 and 2,500 with external partners, major labor unions CGT and CFDT said.

The announcement of the latest round of job cuts sparked an impromptu strike outside the company's headquarters. Peugeot CitroŽn employs 80,000 staff in car production and another 18,000 in associated companies in the country.

The latest cuts come after the Paris-based carmaker announced last month that it planned to axe 6,000 non-production posts across Europe as part of an €800 million ($1.08 billion) cost-cutting plan, amid falling demand in southern Europe.

The plan affects over 10 per cent of the non-production workforce in company, out of its 50,000 employees in Europe.

Peugeot CitroŽn CEO Philippe Varin had said that the cuts were needed as "2011 was difficult for the group and significantly harder than what we expected."