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Peugeot-Citroën Offering Worker Buy-Outs in France

Peugeot is suffering from too many workers to build too few cars

PSA PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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has been offering a voluntary buy-out or retraining to workers in overstaffed positions in France. PSA has been attempting 1,900 voluntary worker buy-outs in France and a total of 6000 worker lay-offs Europe-wide.

Reuters reports from an unnamed source that PSA will begin offering the buy-outs and retraining to workers in more sectors than it first announced, but PSA has not confirmed or denied this plan yet.

The initial cuts were made up of 2,500 workers from PSA suppliers and 3,500 employees within the company. It is doing this by not replacing workers who retire or otherwise leave the company and the offer of buy-outs to get more workers to leave.

PSA was €3.4 billion in debt at the end of 2011 and sold 7% of the company to General MotorsGMUnited States of America, 1998 > present8 models
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to keep the company afloat. Peugeot was running at just 75% capacity in 2011, and sales are continuing to drop in 2012, which will hurt production even more. GM is going to use some of the Peugeot factories to produce Opel models that should shore up some of the company's capacity.