The Peugeot-Citroen Group has a restructuring plan

Posted on Friday, 13 July 2012 , 14:07:59 byIulia

Filed under peugeot-citroenpeugeot-citroen-groupeuropeansalesjobsPeugeotEuropean

The Peugeot-Citroen Group has a restructuring plan


Apparently the Peugeot-Citroen Group has a restructuring plan as a response to the decreased sales in Europe. The company will shut down one factory and 8.000 people will loose their jobs in its home market. This is actually the first time in the last twenty years the company closes a factory in France, a production site near Paris, which will lead to 3.000 unemployed. Some of the ones that work in the Rennes factory will also loose their jobs, 1.400 to be more precise and another 3.600 in other French sites. These 8.000 layoffs come in addition to the ones announced last year. Unfortunately, overall, 100.000 people will be unemployed in France and 209.000 worldwide. The Peugeot-Citroen Group officials said that the reorganization of was a must because in Europe sales have dropped with 15% only in the first five months of this year. This means the company lost EUR700 million in the first half of the year. The use of the plants has dropped to 76% in the first part of this year, down from 86% available last year. Philipe Varin is very aware of the consequences, but there is not a lot they can do at this particular point. To align their production capacity with foreseeable market trends, they had to reorganize everything. The specialists blame everything on the crisis that takes place in Europe and not only.



The Peugeot-Citroen Group has a restructuring plan image The Peugeot-Citroen Group has a restructuring plan image
The Peugeot-Citroen Group has a restructuring plan image