PSA Peugeot Citroen has announced that it is planning to cut 4,800 jobs this year, mostly at its French production sites and offices. This comes hard on the heels of 2,300 losses in England when the old 206 production line in Coventry was shut down.
PSA is suffering, having once been top of the heap in the European market. Net income plunged last year to €176-million, down from a whopping €1.03-billion in 2005.
Mind you, things might already be looking up a little, as sales for the group were up 6.5% in the first quarter of 2007, with strong sales for the 207 hatch. And there are potential big-sellers such as the C-Crosser and 4007 4x4s, the new Citroen C5 and thje 307-replacing 308 to come later this year.
More significantly, PSA senior management have admitted that their cars have become too heavy and fat, and that the 308 will be the last car that will weigh more than its predecessor. With lighter, more agile models on the horizon that might see a return to the greatness of models past (205, 306, AX) the future might be brighter for PSA than it looks now for 4,800 workers.
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